Gold could not continue the momentum that has built up since early November this week. After Jerome Powell was announced as Fed Chairman for a second term, the yellow metal lost gradually. At the end of the week, however, stood a minus of a good 3% on the account at $1,788.10 per ounce.
Despite the short price drop, the prospects are still more than promising that the yellow metal makes a rise again. The circumstances such as rising inflation and negative real interest rates have still not changed. In addition, the new COVID 19 variant again worries because it is not yet foreseeable if this new variant would increase the death rate.
What should be more worrying, however, is the continued printing of money around the world. Dwindling purchasing power continues across much of the world. PPI in Germany has risen to 18% and in Spain to over 32%. It can be only a question of time when these price increases are passed on to the consumers.
Even higher consumer prices? Time for gold!
The farse to make a rising U.S. dollar index responsible for the gold weakness can probably only convince newcomers to the field. However, it should be clear that when the U.S. dollar index rises, it does not mean that gold is weak, but that the currencies with which the U.S. dollar is compared are performing even worse than the dollar itself.
But the day will come when gold prices will have to respond to the endless money printing. Even the biggest gold price manipulators will have to take a step back. One should also not forget that fiat currencies always strive against their intrinsic value and that is simply 0.
Until then, physical gold and especially shares of gold producers are reasonably priced. The shares of gold producers are currently highly volatile, but could already come up from their low in the middle of the year. Who would like to participate in the gold market with leverage can do this with shares of gold producers. The weakness this week can be seen as a new buying opportunity. How did the stocks perform this week?
Gold Mining Stock Performance
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