Inflation is currently at a low level with stable prices, but it is expected to decline in the second half of the year. Emerging markets are experiencing an upward trend in inflation, while global economic growth is forecasted to reach 2.3% in the near future and 2.6% by 2025. Key interest rates are not expected to change until at least May. The Fed is anticipated to cut rates in the second half of the year, with the first rate cut predicted to occur during the Fed meeting in June.
Geopolitical tensions between the USA and China are expected to continue, and the price of gold is forecasted to rise by 4.3% in 2025, driven by improved investment demand and strong central bank purchases. Demand for jewelry is expected to remain stable despite high gold prices, with an increase in demand for gold coins and bars in emerging markets due to high uncertainty factors. Overall, an average gold yield of 4.7 percent is expected for 2025 to 2028, indicating strong support for the gold price and potential investment opportunities for investors. Gold company stocks such as Collective Mining and Karora Resources are recommended for investors seeking additional leverage on the gold price.
Collective Mining has two promising gold and copper projects in Colombia, with ongoing drilling results anticipated. Karora Resources has achieved record production of over 160,000 ounces of gold in the full year of 2023 at its mines in Western Australia.
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Insight: The article highlights the forecast for inflation, global economic growth, and the price of gold, while providing investment recommendations and insights into specific mining companies. It also emphasizes the importance of thoroughly researching and understanding the risks associated with investments and the potential influence of conflicts of interest. Additionally, the information urges caution and highlights the potential risks and pitfalls associated with investing in securities and warrants.
