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Investors are always looking at China. In May, China did not increase its gold reserves any further, according to official figures from the central bank. This means that Chinese gold reserves have stagnated for the first time since October 2023. But even if the People’s Bank of China is not buying any gold at the moment, demand from central banks remains strong and is acting as a price driver. UBS now expects central banks to buy 950 to 1,000 tons of gold in 2024. It had previously forecast 800 to 850 tons. The US labor market data is also always of interest. A good 270,000 new jobs (non-farm payrolls) were recorded in May. At the same time, the unemployment rate reached around four percent. It is not easy to interpret these different figures. Let’s see what the US Federal Reserve does in the near future.

So far, gold has not been able to break out of its record high of USD 2,460 per troy ounce. The precious metal has also failed to return to an upward trend. However, it should only be a matter of time before prices start to rise again. UBS analysts expect the price of gold to exceed USD 2,800 per ounce over the next two years. Setbacks should be seen as entry opportunities.

The US budget deficit continues to rise unabated and geopolitical uncertainties also persist. The safe haven of gold should therefore continue to enjoy great popularity, even if it has recently corrected. High interest rates and the rising US dollar are currently having a negative impact. Nevertheless, in addition to UBS, investment banks such as J.P. Morgan and BofA are also positive about the development of the gold price. A look at gold companies such as OceanaGold or Sierra Madre Gold and Silver should not be missed.

Sierra Madre Gold and Silver – https://www.commodity-tv.com/ondemand/companies/profil/sierra-madre-gold-silver/ – has projects in Mexico that contain gold and silver. The revitalization of the La Guitarra mine is one of them.

OceanaGold – https://www.commodity-tv.com/ondemand/companies/profil/oceanagold-corp/ – is a successful producer and owns four gold mines. These are located in the USA, the Philippines and New Zealand. OceanaGold also has strategic investments and interests in two exploration companies.

Current company information and press releases from Sierra Madre Gold and Silver (- https://www.resource-capital.ch/en/companies/sierra-madre-gold-and-silver-ltd/ -) and OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-corp/ -).

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.

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