Gold Price: What to Look for Ahead of US Key Inflation Data?

Published on: December 9, 2021
Author: NAI500

Gold Price Wants Clarity After Powell’s Hawkish Stance

After a few choppy trading sessions, gold appears to have entered wait-and-see mode ahead of key CPI data set to be released Friday, finishing the day today relatively flat.

Markets are still trying to digest a more hawkish stance coming from the Federal Reserve and widespread Omicron fears. While equities and bonds have extended some of their previous gains, gold is still looking to restore its safe-haven status. But could December’s Federal Reserve’s monetary policy meeting be the catalyst gold prices have been waiting for? Some analysts think so.

“Gold has been up and down because of the uncertainty that the Fed has introduced with a more aggressive tapering stance. Markets are unsure that it is the right expectation. Everything seems to be coming back to the Fed. There’s widespread volatility across markets,” Gainesville Coins precious metals expert Everett Millman recently told Kitco News. “I’ve been talking a lot about the Fed potentially making a policy mistake. And Powell commenting on accelerating tapering might have already been that mistake. Gold is on its back foot trying to react.”

The current tone coming from Fed Chair Jerome Powell and others on the FOMC seem to indicate that an acceleration of QE tapering is coming sooner rather than later. Inflation numbers are expected to come in hot just ahead of next week’s FOMC meeting, which could weigh heavily on the Fed’s monetary strategy. But will this be enough to push gold prices past strong resistance at $1,800?

Goehring & Rozencwajg Projects Gold Price at $10k in the Long Run

Doubts remain about whether tightening monetary policy alone will be enough to combat climbing inflation. In a recent interview, Leigh Goehring, managing partner at Goehring & Rozencwajg Associates, told Kitco News that a “decade of shortage” is coming. It will be defined by a combination of high inflation and unsuccessful rate increase – a pair of events that could set off a massive gold rally.

Inflation could reach 9% next year, and it may get worse before it gets better.

“We’re getting closer to the explosion of gold prices to the upside. I’m a big believer that inflation is not going away. It’s going to continue to be a problem,” said Goehring. “We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock.”

Gold Stocks Offer an Inflation Hedge

Gold is probably the most well-known inflation hedge around. However, many investors also look to gold and mining stocks to protect and accumulate wealth during times of market uncertainty.

Unlike physical gold, gold and mining stocks offer investors both an inflation hedge – prices tend to move in the same direction as commodity prices and inflation – and the ability to profit from strong company performance in the form of climbing stock prices, dividends, or both.

About Newrange Gold Corp.

Newrange Gold (TSXV: NRG, OTCQB: NRGOF, FWB: X6C) is a Vancouver-based mineral exploration company focused on the acquisition, exploration, and development of mineral resources in highly favourable jurisdictions. The company currently owns significant assets in Nevada, Ontario, and Colorado.

Newrange’s Pamlico Project:

The company’s flagship Pamlico Project is a high-grade project located in Mineral County, Nevada. The area is notable thanks to historic high-grade underground gold production. And with locally high-grade, near-surface oxide gold mineralization, the Pamlico Project is poised to become the most significant new discovery in Nevada in recent memory.

Drilling at the site has so far yielded very promising results. Follow-up holes around P21-115 discovered shallow, high-grade, oxide gold mineralization 85 meters east of the Merritt Zone. Meanwhile, hole P20-115 intersected 123.5 meters averaging 1.13 g/t Au (gold per tonne), including several high-grade intervals such as 12.47 g/t Au over 4.5 meters, 5.52 g/t Au over 7.62 meters (including 22.35 g/t Au over 1.5 meters) and 13.01 g/t Au over 1.5 meters.

Newrange recently completed an IP (induced polarization) survey of the existing Pamlico Project. In addition to defining and expanding upon known anomalies, the UP survey results also identified three new areas of interest butted against the property’s borders. As a result, Newrange Gold increased its land stake, more than doubling its existing property size to 1,670 hectares.

Newrange’s Ontario Properties:

Newrange is currently exploring two assets in the prolific Red Lake Mining Division of northwestern Ontario, Canada, the North Birch Project and the nearby Argosy Gold Mine Project.

The North Birch Project is located in an area that has been minimally explored previously due to accessibility issues. However, a recent IP survey of the North Birch Project successfully returned several high-priority targets.

Meanwhile, the company purchased a 100% stake in the prolific Argosy Gold Mine, which produced over 101,000 ounces of gold between 1931 and 1951.

“The Argosy Mine is the most significant past-producing gold mine in the Birch-Uchi Greenstone Belt,” stated Robert Archer, Newrange President & CEO.  “The advancement of the nearby Springpole deposit has brought a lot of attention to the potential of this region and we believe that Argosy and our neighbouring North Birch Project position the Company well to benefit from that development.”

Disclaimer: NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.


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