Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
With the Federal Reserve increasingly expected to cut interest rates and traders boosting their bets on Trump’s return to the presidential office, gold prices have set new historical records. Spot gold prices surged 1.7% to $2,464.39 per ounce, with intraday highs reaching a new record of $2,466.02 per ounce. New York gold futures also climbed 1.7% to $2,470.10 per ounce.
Silver prices also saw significant rises. By the close of trading, London’s spot silver and COMEX silver futures had risen by 1.87% and 1.77%, respectively.
Since the beginning of the year, gold prices have risen nearly 20%. On a monthly basis, gold prices broke through the consolidation range of April to June and resumed their upward trend in July. Even though the People’s Bank of China has paused gold purchases for two consecutive months, which is considered a major bearish factor, it has not been enough to halt the upward momentum of gold. The fact is that gold is now in an uptrend, displaying resilience to bearish news, while the absence of negative factors continues to support higher prices.
However, the record highs in gold prices have not come as a surprise to the market. In June, consulting firm Metals Focus predicted that gold prices would set new records this year, and Citigroup suggested earlier this month that the base price range for gold in 2025 could be between $2,700 and $3,000 per ounce.
The rise in gold prices is primarily driven by the expectation of the Federal Reserve easing monetary policy, substantial purchases by central banks, and strong consumer demand from China. Additionally, geopolitical tensions have bolstered safe-haven demand for gold, while recent increases in gold ETF holdings have also supported higher prices.
ING’s commodity strategist Ewa Manthey stated on Tuesday that optimistic sentiment about U.S. rate cuts is bolstering gold prices. In the current global geopolitical and macroeconomic environment, gold is likely to maintain its upward trend, with central bank demand expected to continue growing.
Federal Reserve Chair Jerome Powell said on Monday that recent data makes policymakers more confident that inflation is moving towards the Fed’s 2% target. Traders have started to increase bets on three rate cuts this year, following Goldman Sachs’ statement that the conditions are ripe for easing, potentially as early as July. TD Securities’ head of commodity strategy Bart Melek noted that the probability of a Fed rate cut in September has now reached 100%, with dovish remarks from the Federal Reserve driving up the gold market.
The ongoing Trump trade is also a significant focal point.
Last weekend, Trump survived an assassination attempt, and a judge dismissed a criminal case against him, boosting his campaign momentum. UBS commodity analyst Giovanni Staunovo believes Trump’s victory could have both positive and negative impacts on gold prices: On the downside, possible tax cuts could shift funds into the stock market, ultimately limiting the pace of rate cuts; on the upside, tax cuts could also impact the U.S. fiscal balance, weakening the dollar status and pushing buyers toward safe-haven assets like gold.
