AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
The World Gold Council has highlighted several key risk factors that could disrupt the potential upward trend in gold prices. The upcoming 47th Annual Jackson Hole Symposium (August 22-24) and the looming first rate cut by the Federal Reserve (September 18) in a few weeks will be crucial, with statements and data playing a pivotal role. Another factor to consider is U.S. politics, which could also have a significant adverse impact on gold prices this month. The third risk factor for gold prices this month stems from the stock market, particularly the technology sector, which has recently been under considerable pressure.
On Friday (August 9), gold prices stabilized after a significant increase in the previous trading day, as new U.S. economic data alleviated concerns about an economic recession, reducing the appeal of the safe-haven metal to investors.
Gold is set to decline by about 0.8% this week, possibly marking the largest weekly decline since June 7. The price of gold dipped 3% on Monday due to the impact of a widespread stock market sell-off, leading to three consecutive days of declines.
Last Thursday, the United States reported the largest drop in initial jobless claims in nearly a year, boosting market optimism about the Fed’s ability to achieve a soft landing through loose monetary policy, subsequently causing gold prices to rise.
The increase on Thursday brought gold prices close to the record set last month. Gold prices have risen by about 18% since the beginning of this year, mainly due to market expectations of an imminent rate cut by the U.S. Federal Reserve.
Other factors supporting the rise in gold include increased purchases by central banks worldwide and Chinese consumers, as well as safe-haven buying spurred by conflicts in the Middle East and Ukraine.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, also expressed optimism about gold, stating, “We remain positive on gold as a diversification hedge against turmoil in other areas.”
