1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Spot gold pushed back above the $4,100 mark in pre-North American trading on Wednesday, extending this week’s rebound to trade at $4,125.10 an ounce, up 1.19%, after touching an intraday high of $4,142.70. The move puts the market squarely against the $4,140 resistance level identified in the latest technical setup. Spot silver followed suit, rising 1.32% to $59.44.
The recovery has been fueled by softer U.S. inflation readings, with June’s CPI and PPI easing concerns over imminent Fed tightening. Yet resilient activity data — retail sales up 0.2%, jobless claims falling to 208,000, the Philadelphia Fed manufacturing index surging to 41.4 and consumer sentiment improving to 54.4 — have kept the outlook mixed. Traders widely expect the Federal Reserve to hold rates steady at next week’s meeting but are not pricing in a clear dovish pivot for the second half. The 10-year Treasury yield remains near 4.6% and the dollar index hovers around 101, leaving gold supported by short covering and cooling inflation but capped by the risk of rates staying higher for longer.
Geopolitical tensions are providing an additional defensive bid. The Strait of Hormuz remains heavily stressed under political and military pressure, far from a normal shipping environment, while Houthi threats have heightened risks around Red Sea and Saudi flows. Brent crude traded above $94 and WTI above $87, keeping an energy-risk premium in place. For gold, the impact cuts both ways: geopolitical anxiety underpins haven demand, but elevated oil keeps inflation worries alive and can limit bullion’s upside through yields and Fed expectations.
Shifting capital flows offer another lens on the rebound. Bloomberg macro strategist Simon White earlier argued that some of the liquidity that powered the semiconductor surge may have been drawn from gold and Bitcoin. As the chip trade has recently shown cracks, that flow could be starting to reverse, with at least part of the money rotating back into bullion — suggesting the bounce is not solely a function of falling yields or geopolitical angst.
Underpinning the market is what Goldman Sachs’ commodities team calls a “structural floor” from central-bank buying. Global central banks purchased an estimated 81 tonnes of gold in May, with the three-month seasonally adjusted pace running at roughly 67 tonnes per month — nearly four times the pre-2022 average. China remains the largest identifiable buyer. The freezing of Russia’s reserves in 2022 has accelerated a broader diversification push, with reserve managers increasingly favoring an asset that carries no foreign issuer risk and lies beyond the reach of another government’s policies. That price-insensitive official demand helps explain why gold has held its footing despite elevated real yields and a firm dollar.
On the technical front, gold has shifted from vulnerable to constructive. After recapturing $4,100, it cleared several minor resistance levels. A sustained hold above $4,080 would keep the short-term recovery intact; a break below the $4,050–$4,040 breakout zone would weaken momentum. The immediate test is the $4,140 resistance area, but the real ceiling lies higher — the 200-day moving average around $4,505–$4,510 remains firmly in place. Only a decisive break above that major barrier would confirm a new bullish leg, rather than a corrective bounce.
For now, gold has found its feet and market tone has improved, but the metal has yet to break free. Whether it can clear key resistance will depend on stronger follow-through from price action and broader investment flows. Ahead of next week’s Fed meeting, any fresh disruption to Hormuz or Red Sea shipping lanes, moves in Treasury yields, and U.S. flash PMI data will be critical in determining if the rally has further to run.
