Gold Future | Gold investors shouldn't be disappointed
A price of $ 1,800 an ounce of gold is an important mark and the price of gold is not far from it. A weak US dollar is currently supporting the price of the precious metal. The announced resignation of Bundesbank President Weidmann also seems to have had a positive effect on the gold price. Because Weidmann always tended towards a more restrictive monetary policy. With a successor, one expects a less hawkish attitude. Experts, such as those from Commerzbank (DE: CBKG ), expect the European Central Bank to stick to its expansive monetary policy for some time to come.
This in turn supports the gold price. Whereby this has not developed so badly on closer inspection. Because despite the Fed's tougher expectations, higher yields and the competitive situation in other asset classes, the price of the precious metal was able to maintain a certain level of strength. Compared to the US dollar, gold performed better than some of the G10 currencies.
Central banks continue to buy gold, for example Poland and Russia, and physical demand, for example from India, an important gold consumer, has shown strength in the current year. Gold imports were 30 percent higher than in 2019 by September 2021. So physical gold demand has recovered from the corona shock. And with the current inflationary situation, not only gold should benefit, but gold stocks too. For example CanaGold or Chesapeake Gold.
Canagold Resources Ltd (TSX: CCM ) is focused on advanced gold projects in North America - including the prospective early producing New Polaris project in British Columbia.
At Chesapeake Gold Corp (TSXV: CKG ) the Metates gold-silver-zinc project in Mexico is particularly noteworthy. A preliminary, very positive economic assessment is available.
In accordance with Section 34 of the WpHG, I would like to point out that partners, authors and employees can hold shares in the companies addressed and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of these messages applies.
