Jerome Powell, Fed Chairman, has signaled that the rate hike cycle is all but over. In the past two months, large and small futures speculators have added about 311 tons of gold. Central banks also added heavily to gold in the first quarter of 2023. For example, Singapore added 17 tons of gold to its gold reserves. For China, it was 18 tons of gold. Gold thus continues to live up to its status as a hedging vehicle. The all-time high in the gold price of June 2020 has almost been reached. In addition to the signals from the Fed chief, bank worries and the looming U.S. debt ceiling are driving the price of the precious metal. In addition, there is the weakness of the U.S. dollar, which is good for rising gold prices. The recession risks in the U.S. are not yet off the table. March also brought net inflows into ETFs. Gold in the portfolio has improved returns in recent decades.

Of course, on the other hand, the currently high gold price is vulnerable if interest rate expectations change, or the U.S. dollar strengthens again. But there are no signs of that at the moment. The silver price is currently hovering around 25 US dollars per troy ounce. The gold-silver ratio is around 80. Inflation is still above the target level of two percent, but if the banks are now more cautious in granting loans, this could also lower inflation. At least that’s what Powell said recently. However, the future is likely to show that the inflation rate will remain above the target value for longer. So, if the interest rate peak is reached soon, and it can’t be much longer, then investors should be able to look forward to strong gold and silver prices. And gold companies like Calibre Mining or Condor Gold will also be happy.

Active in North and South America, Calibre Mining – https://www.commodity-tv.com/ondemand/companies/profil/calibre-mining-corp/ – brought in a record 65,000 ounces of production in the first quarter of 2023.

Condor Gold – https://www.commodity-tv.com/ondemand/companies/profil/condor-gold-plc/ – owns the prospective La India gold project in Nicaragua.

Latest corporate information and press releases from Calibre Mining (- https://www.resource-capital.ch/en/companies/calibre-mining-corp/ -).

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