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.
After hitting a historic high of US$2,968.50 per ounce on Tuesday, gold prices have now fallen for the second consecutive day. This decline is closely tied to the latest U.S. inflation figures for January, which surpassed expectations.
According to the Bureau of Labor Statistics, January’s Consumer Price Index (CPI) rose 0.5% from the previous month, exceeding the 0.3% market forecast; core CPI—which strips out volatile food and energy costs—rose 0.4%, far above December’s 0.2% increase. These higher inflation readings have prompted closer scrutiny of the Federal Reserve’s next policy steps.
During his semiannual testimony before Congress, Federal Reserve Chair Jerome Powell again emphasized a “patient” stance, reiterating that there is no rush to lower rates. Market expectations reflect a similar view: the CME’s FedWatch tool indicates a roughly 97.5% likelihood that the Fed will keep its benchmark fund rate at the current range of 4.25% to 4.50% in March, with an 86.8% probability of no change in May. Analysts at Saxo Bank predict that the central bank may only have room for one rate cut this year, potentially in September.
Following Tuesday’s record-breaking high, gold prices briefly slid to US$2,907 per ounce but rebounded on notable buying interest, closing near US$2,926.50. On Wednesday, gold continued to trade slightly lower, finishing at US$2,924.90 as of 4:55 p.m. Eastern Time, a drop of US$2.00 from the previous session. Similarly, when prices fell to around US$2,886.50 earlier, swift inflows of capital pushed gold up by US$38 by settlement, underscoring the metal’s strong support levels.
While recent gains have been temporarily capped, investor demand for gold as a safe haven remains robust—further trade tensions or global economic uncertainties could propel prices toward the US$3,000 mark.
According to industry experts, gold’s overall technical setup continues to favor bullish momentum. Concerns over persistent inflation and geopolitical risk, combined with the possibility of a more hawkish Fed, are all fueling this market. Although Powell’s calls for caution have introduced a brief period of consolidation, gold’s repeated rebounds from intraday lows indicate that bullish sentiment remains firmly in place.
As investors seize each dip to bolster their hedge positions, price volatility may grow in the near term. Nevertheless, with inflation still elevated and policy uncertainties looming, gold is likely to retain solid support. This highlights the crucial factor at play: despite two days of price retreats, ample buying on declines has kept gold at relatively high levels—clear evidence of the market’s continued interest in holding gold for the long run.
