The bullion price continues its slow dance around the psychological threshold of $2,000. The turmoil that involved the banking sector in both the United States and Europe is not yet fully resolved.
Investors are waiting for the next moves by central banks, which are now forecasted to be more dovish. In this scenario, the Dollar has slightly declined against both the euro and sterling, encouraging a new rebound of gold.
From a technical perspective, gold appears to be in a consolidation phase after the recent gains. Surpassing the recent top of $2,010 could open up space for further rallies, with a quick potential target to $2,070-2,075 – around the historical high reached in early 2022.
Gold is shining, and it is worth noting that in the last few weeks, the stocks of major gold and silver mining companies have posted significant gains with double-digit growth. Newmont Corp is up by 11% in the last four weeks and Barrick Gold by 16%.
The Canadian multinational Franco-Nevada gained 13.5%. Wheaton Precious Metal Corp increased its value by 15% on a monthly basis, while Kinross Gold Corporation jumped by 25% (with a 10% rally in the last week). AngloGold Ashanti stock performed even better, rallying from $16 to $22.5 (+35%).
What does this rebound tell us? From our point of view, it is significant as investors are not only betting on physical and paper gold but also on mining companies.
This confirms a growing interest in the whole sector, with strong expectations for improvement in the anticipation of further gains in revenues from the precious metal sector, mostly thanks to the recent gold price rally.
Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. His precious metals market commentary has featured in the likes of Forbes, Reuters, CNBC, and Nasdaq.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis of gold and silver markets’ performance is frequently quoted by leading publications, week on week.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.