Before exploring the specifics, we have to look at the health of the commodities market at large. With economic pressure still leaning towards the negatives, many are banking on the necessity of commodities to allow for some flexibility in their portfolios. However, some financial institutions predict that different products in the market will now be looking to diverge from each other.
Gold traders in Dubaistill look toward a bullish future with regard to how the price trend last March managed to climb higher than expected. Although a trend reversal is bound to occur at this point, it leaves investors in quite a favorable position compared to earlier in the year. Shorter-term predictions look towards a more modest output with prices testing the resistance levels playing around the $2,000 mark.
Other commodities such as Oil are starting to look shaky due to increased volatility in their trends. Analysts have been eyeing price lows at around the same time that gold is expected to rebound. Those with capital investment in both products should look to maneuver accordingly and take note of the situation as it plays out.
The previous trend for commodities these past few months has been in response to various interest rate hikes introduced by the FEDs. However, the last FOMC meeting made it clear that the board has been considering an interest rate pivot for the upcoming future. Hence why many investors are once again eyeing gold investments to protect against the shock of such a move.
Once again, we have to refer to the historical trend of gold appreciating during times of economic stress such as that brought about by increasing rates. The 1970s played a key role in solidifying this trend as the FEDs also implemented similar initiatives with gold prices skyrocketing in response. Should they maintain their current position in tackling inflation while influencing economic growth, gold investors should be ready to take advantage of the potential gains this will bring.
Gold, according to its own nature, is unique in its defensive properties, and this is why many value-generating portfolios have been found to incorporate it. Some of these involve gold contracts and ETCs while others deal in bullion trading in Dubai to get the best prices on physical products. Whatever your approach, a small stash of gold investments can help in creating a nest fund that’ll protect you from most economic threats looming right now.
Statistics have now been published regarding both gold production and sales for both Eldorado Gold and Alamos Gold. For Eldorado, the company has seen production rates increase by 21% compared to the first quarter of last year. In total, there were 112,533 ounces of gold brought out of the ground with further improvements being looked into.
Alamos, another Gold Mining Company similar to Eldorado, has also reported strong production rates and operational capacity. According to John A. McCluskey, their current President and CEO, costs and financial performance were well within their expectations. The La Yaqui mining project saw significant performance and is the current flagship site for the company’s increasing growth metrics. In total, the company was able to extract around 128,400 ounces of gold which signifies an increase of around 30% compared to the first quarter of the previous year.
When paired with the financial performance of gold products within the commodity sector, it seems that the whole industry is pointing towards a bullish future. Only time will tell how long this growth can sustain itself.
However, for individual investors, the time to invest in Gold Bullion products is now! New innovations within the market, alongside technological advances made by gold mining companies, have started a new rally upwards. Want to tap into the gold market’s strong potential? Then working with respected gold traders in Dubai could give you the edge you need!
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