The gold price experienced ups and downs this week, sinking to nearly US$2,470 per ounce on Wednesday (September 4) before rebounding back above US$2,500 the next day.
August’s 142,000 number for jobs missed analysts’ expectations of 160,000, solidifying thoughts that the US Federal Reserve will cut interest rates at its next meeting, scheduled to run from September 17 to 18.
“What (does the Fed) know about the economy that’s going wrong — that the rest of Wall Street is ignoring, that investors are ignoring? Now number one, that’s probably pretty good for gold, because it’s a safety asset,” he said.
“For a stock market that had fallen sharply about three, four weeks ago and is now rebounding to almost all-time highs — that’s a big concern for me, and I think we have to just be aware that you have to read between the lines. It’s good the Fed might cut, but if the Fed has to cut too much it’s because something has drastically gone wrong in the economy.”
If approved, the US$970 million deal will see First Majestic gain ownership of Gatos Silver’s 70 percent stake in the Los Gatos joint venture, which operates the Cerro Los Gatos silver mine in the country. The combined entity is anticipated to produce 30 million to 32 million silver equivalent ounces annually.
Goldman also reduced its aluminum price outlook, and remains bearish on nickel and iron ore. But on a brighter note, the investment bank is maintaining its gold price target of US$2,700 for early 2025. It describes the yellow metal as “the commodity where we have the highest confidence in near-term upside.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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