Gold price: Comeback by the US Federal Reserve - outlook for 2024 promising

Gold price: Comeback by the US Federal Reserve - outlook for 2024 promising

According to a report by www.deraktionaer.tv,

The price of gold made a brilliant comeback yesterday. Inspired by the US Federal Reserve, the bulls were able to recapture the $2,000 mark. Mining stocks also rose significantly. The gold mining ETF GDX closed back above the $30 mark. “The fact that the US Federal Reserve is now talking about cutting interest rates has boosted the market,” says Markus Bußler.

The fact that the price of silver has also risen only makes the market broader. “It is entirely possible that this is a B wave that is followed by a deeper C wave,” says Markus Bußler. But investors shouldn't lose sight of the forest for the trees. A strong first quarter of 2024 is brewing for precious metals and also mining stocks. The mines in particular should benefit from at least constant costs and rising gold and silver prices. “That increases profits.” In addition, numerous operational problems that 2023 brought with it should be a thing of the past.

The individual shares include, among other things, the reopening of Barrick Gold's Porgera mine in Papua New Guinea. The project was on hold for around three and a half years after the state revoked Barrick's license. But now the mine, which produces over half a million ounces of gold per year, can be put back into operation. The copper sector also looks exciting. Copper stocks have stabilized and copper itself is trading at over $8,000 per ton again. “Together with lithium, copper can become one of the big comeback stories of 2024,” says Markus Bußler. Ivanhoe Mines had announced a $500 million capital increase, but the market digested it well. The copper story is intact. Now it's all about China. If the Chinese economy succeeds in the turnaround, then copper can quickly rise back to old highs.

These developments signal a potential bullish trend for precious metals and the mining industry. A rising gold price should not only be interesting for investors, but also have an impact on the entire financial industry. It creates confidence in safer investments and could have a negative impact on the stock market as investors could invest more in gold and mining stocks. The reopening of the Porgera mine and the stabilization of the copper sector also signal increasing demand for raw materials. This could have a positive impact on mining companies and the trading of these raw materials. However, it remains to be seen how the economic situation in China will develop, as this could have a direct impact on the price of copper.

These developments suggest that investors may need to diversify their portfolios and invest more in commodities and mining companies.