Breaking: Gold price getting crushed – iran news daily iran news now
TEHRAN (Iran News) – Trillions of dollars were pumped into financial markets in 2020 and that won’t come without consequences. Economists expect that investors will be Bracing For Inflation in 2021. Investors are dumping lower-yielding assets like gold to buy higher volatility securities like Tesla shares and bitcoin, said Gareth Soloway, chief market strategist at In The Money Stocks, but Soloway is not selling his gold yet.
“The one thing I would say to investors that are into gold is stick with it. This to me is a classic retrace, it’s had a great move up, it’s seeing a sell-off,” Soloway said. “The shorter-term investors are saying, why am I in gold when bitcoin is going up 5% every single day, or 10% in a day, and they’re selling their gold assets.”
Soloway’s comments come as Friday’s nonfarm payroll report showed a loss of 140,000 jobs in December, the most since the start of the pandemic.
Inflation expectations were down as a result, with the TIP ETF falling on the weak jobs report. Inflation expectations are positively correlated with gold.
Today gold tumbled around 4% as investors sold off the precious metal. February Comex gold futures were last trading at $1,839.40, down 3.88% on the day after breaching a key $1,850 an ounce level.
The fall is being blamed on a rise in bond yields and worries about the economy, resulting in liquidation and a flight to cash.
However, analysts are still holding onto a long-term bullish trend for gold. Writes that the year ahead is shaping up to be a ‘steady-as-she-goes’ year for Fed policy, which is expected to be generally supportive of precious metals for the next two to three years.
Despite gold’s wobbles, miners announced big moves this week. Agnico Eagle bought TMAC Resources for $286 million Canadian. Of course Shandong announced its takeover offer last May after TMAC but was prevented by federal government with Canadian and China relations souring. Agnico Eagle paid about 26% higher than Shandong’s bid.
SilverCrest Metals announced this week that it secured a project financing facility of US$120 million with RK Mining to build its Las Chispas project in Mexico. SilverCrest already has a contract with Ausenco for construction. Commissioning of the process plant is targeted for Q2 2022 and production ramp-up is slated to begin in Q3 2022.