Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
In a dramatic turn on the international gold market, gold prices soared past the historic $3000 per ounce barrier last Friday, setting new records and catching many investors by surprise. While several mainstream institutions had forecast this milestone earlier this year, the speed of the ascent has far exceeded expectations.
From $2500 to $3000, gold’s remarkable climb required just 210 days—the fastest ever observed for a $500 price leap in gold’s history.
Historically, each $500 milestone—from $500 to $1000, $1000 to $1500, and so on—took an average of approximately 1700 days to reach. This recent surge, nearly eight times faster than previous climbs, illustrates unprecedented momentum. Despite the percentage increase being lower compared to the earlier periods (a 20% rise in this instance versus the earlier doubling scenarios), the absolute speed of the gain has captured the market’s attention.
Technical indicators further underscore the bullish sentiment. Current gold prices are about three deviations above the 200-day moving average—a deviation reminiscent only of instances during the COVID-19 pandemic when prices broke $2000 and again at the critical threshold before hitting $2500.
Experts from the World Gold Council caution that while technical corrections are likely in the short term, the underlying fundamentals remain strong. Historical patterns indicate that after breaching a $500 increment, gold prices typically hold for about nine days before a temporary pullback, only to quickly regain strength and forge new highs in roughly 80% of such instances.
Adding to the complexity is the dense cluster of derivative contracts nearing expiration. For example, U.S. Gold ETF options due on March 21 carry a nominal value of approximately $8 billion, and gold futures options expiring on March 26 have a total scale nearing $16 billion.These crowded expiries may trigger a “slingshot effect,” potentially amplifying volatility while also prompting short-term profit-taking.
Despite potential short-term hiccups and even a cooling influence on jewelry demand—given that soaring prices could shift consumer behavior—the structural drivers supporting gold remain robust. Key factors include:
Furthermore, current macroeconomic conditions, compounded with the lingering impacts of the post-2008 unconventional monetary policies, have left the Federal Reserve in a policy dilemma. This scenario continuously reinforces the market’s allocation towards gold as a secure asset in times of uncertainty.
While the “lightning strike” in gold prices may lead to short-term corrections, the underlying structure of the market indicates enduring support. For investors, this historic surge—underpinned by geopolitical instability, inflationary trends, and complex derivative market dynamics—signals that the gold rally may have only just begun.
