Gold Prices on the Rise, Defying US Dollar Strength

The current trend in gold prices shows a strong upward movement, continuing to rise despite the robust performance of the US dollar. Technical analyses predict new highs for gold, with silver also showing gains but not at the same pace as gold. Gold's technical indicators remain strong, with no significant signs of a reversal. The immediate target for gold is set at $2,222 per troy ounce, with potential to reach $2,359 per troy ounce based on Fibonacci calculations.

Several factors contribute to the anticipation of further increases in gold prices. A new cycle in the precious metals market may be beginning, influenced by factors such as high government debt, increased central bank acquisitions of gold, and inflationary pressures. A recent survey indicated that approximately 71% of central banks plan to expand their gold reserves, highlighting a shift towards gold in response to economic uncertainties.

The appeal of gold is further enhanced by its performance across various currencies, reaching record highs not only in USD but also in euros and others. Low interest rates and geopolitical uncertainties are driving investors towards gold as a safe haven. The performance of gold in 2023 and optimistic outlook for 2024 suggest that both physical gold and gold-related companies are worthy of consideration for investors.

Among the notable companies in this sector are Gold Royalty, with over 200 royalties in gold and copper, Osisko Gold Royalties, boasting more than 180 royalties and streams, and Queen's Road Capital Investment, which offers financing solutions for mining operations. These entities represent significant opportunities within the gold market.