Gold price experiences short-term turbulence

The gold market is sensitive to economic and monetary policy uncertainties. Recently, there have been renewed rumors that Fed Chairman Jerome Powell may be facing dismissal. Gold, a safe haven, reacted immediately in terms of price. However, as so often before, the US president made a U-turn and withdrew his threats. Inflation concerns are also likely to be a significant factor, as the latest figures show that core inflation once again fell short of expectations. In June, retail prices in the US rose to 2.7 percent. In May, it was still 2.4 percent. In addition, rising interest payments are forcing the creation of new money. As a result, the US dollar money supply continues to rise steadily. Looking back at 2020, the money supply increased sharply due to the pandemic. And within 2021, consumer price inflation rose from an initial two percent to just under seven percent. In mid-2022, it even reached almost nine percent.

Since the US dollar is still the dominant currency, even though efforts to de-dollarize are increasing, many are in favor of a gold standard. In any case, central banks around the world are buying gold for reasons of value preservation and diversification. It is interesting to note that the number of central banks buying gold directly from domestic mines is growing. A good half of central banks are doing so. When commodities appear cheap compared to gold, their prices often rise. The price of platinum has risen significantly, as has the price of palladium. Chart technicians expect a new wave of buying and a further rise in the price of platinum if the price rises above US$1,243 – and we are currently well above that level. This should please companies such as Sibanye-Stillwater and pure gold companies such as Miata Metals.

Miata Metals – https://www.commodity-tv.com/ondemand/companies/profil/miata-metals-corp/ – is working on two promising gold projects (Sela Creek, Nassau) in Suriname, South America.

Sibanye-Stillwater – https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ – successfully produces platinum metals and gold in the US and South Africa.

Current company information and press releases Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -) and Miata Metals (- https://www.resource-capital.ch/en/companies/miata-metals-corp/ -).

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