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Bond yields weigh on gold price


Rising bond yields are affecting the gold price right now, but upside potential exists in the long term.

Yields on ten-year government bonds have risen to over three percent, the highest level in more than three years. At the same time, a firm U.S. dollar caused a loss in the price of gold. In addition, there are strong expectations of interest rate hikes. Nevertheless, Commerzbank, for example, has raised its gold price expectations. By the end of the year, Commerzbank analysts expect a gold price of 1,900 U.S. dollars per troy ounce. And for 2023, they expect 2,000 US dollars per ounce of gold.

The price of gold is being driven by inflation, which is likely to remain at a high level in the long term. Should the economic data weaken, interest rate hikes could be lower than assumed. This in turn would strengthen the gold price. In addition to serving as a hedge against inflation, gold is serving as a sought-after safe haven in this time of war in Ukraine. Many asset classes have suffered heavy losses in the first quarter of 2022, while gold has started the new year very well. Currently, although the price of the precious metal has come down again from the record level in 2020 and also from more than USD 2,000 per ounce in March, the outlook for the longer term remains very good. Indeed, not least due to the extreme rise in energy prices, in addition to food prices, inflation has reached record levels in many countries. And real yields are still in negative territory. The U.S. dollar and the gold price usually behave in opposite directions, but this was not the case in March. Although the U.S. dollar rose tremendously, the gold price is gaining almost to record levels, so anything is possible and an investment in gold companies like Tarachi Gold or Skeena Resources is always a good decision.

Skeena Resources – https://www.youtube.com/watch?v=7UPcsGXmoMI – owns the Eskay Creek and Snip projects in British Columbia and collectively one of the largest land positions there.

Tarachi Gold – https://www.youtube.com/watch?v=qwQHXVfmBy4 – is focused on Durango, Mexico and the Sierra Madre Gold Belt.

Current corporate information and press releases from Skeena Resources (- https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also

applies: https://www.resource-capital.ch/en/disclaimer/

Posted by on 10. May 2022. Filed under Internet, Picture Gallery. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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