Sudan’s year-long civil war shows no signs of abating, pushing the nation towards a humanitarian catastrophe. The conflict between the military and paramilitary Rapid Support Forces (RSF) has escalated, displacing millions and plunging the country into the world’s worst displacement crisis. Foreign meddling and the exploitation of Sudan’s gold resources further fuel the conflict, while the international community struggles to address the escalating crisis.
**Montage Gold Corp. (TSXV: MAU) (OTCQX: MAUTF)** has obtained a signed Ministerial Order from the Ministry of the Environment, Sustainable Development and Ecological Transition of Côte d’Ivoire, granting the necessary environmental approvals for the development of its Koné project. The Environmental Permit includes approval for in-pit tailings disposal, making Koné the first mine in Côte d’Ivoire to receive this approval. Montage has also submitted the mining permit applications for the Koné project and anticipates receiving all necessary approvals during H2-2024.
Gold has seen a significant price surge, driven by factors such as global geopolitical and economic uncertainties, including the Russia-Ukraine conflict and the Israel-Palestine conflict. China’s influence has played a crucial role in this sustained rise, with Chinese consumers and the central bank increasing their demand and reserves of gold. The demand for gold in China has been driven by waning confidence in traditional investments like real estate and stocks, leading to a rise in gold purchases by Chinese households. Additionally, China’s central bank has been steadily increasing its gold reserves while reducing its holdings of US debt.
Gold has surged to record highs amid geopolitical tensions and economic uncertainties. China, the world’s largest gold consumer, has been accumulating reserves as a hedge against the potential decline of the US dollar. Other central banks and investors seek gold as a safe haven asset during periods of heightened geopolitical risk, such as the ongoing conflicts in Ukraine and Israel. Gold’s intrinsic value and independence from any single issuer or economy make it an attractive option during times of uncertainty.
The relationship between gold and real interest rates has historically been inversely correlated. However, this relationship has broken down over the past year, leaving analysts puzzled. This anomaly suggests either gold is significantly overvalued or the US government is on the verge of a monetary crisis. Gold mining stocks, such as those in the NYSEARCA: GDX, could be impacted by this trend.
Gold’s recent surge has pushed it to extreme overbought levels against all major fiat currencies, signaling a potential price peak. However, factors like speculator skepticism and a probable shift in fundamentals suggest that this extreme may not mark the end of the cyclical gold rally.
In a recent interview, former Reagan advisor Steve Hankey shared his insights on the current state of the U.S. economy and offered investment recommendations in light of potential challenges. Hankey believes the Federal Reserve’s actions have contributed to inflation and is concerned about the growing role of government in decision-making. He predicts a possible recession later this year and suggests considering gold, Iowa farmland, and 10-year Treasury bonds as investment options.
Gold prices hovered within a narrow range on Wednesday, buoyed by a weaker dollar but weighed down by expectations of continued interest rate hikes. The yellow metal has recently retreated from record highs as tensions between Iran and Israel eased, reducing its safe-haven appeal.
Prime Minister Narendra Modi has sparked a political controversy by alleging that the Congress party’s manifesto includes plans to seize gold and property from citizens and redistribute them based on family size. These remarks, delivered at a recent rally in Rajasthan, have drawn a strong response from the Congress.
Freeport-McMoRan Inc. (FCX) reported solid first-quarter results, with revenue and earnings per share (EPS) surpassing analysts’ estimates. The company’s copper sales surged by 33% year-over-year (Y/Y) on higher production and ore grades, while gold sales more than doubled. Despite the positive results, FCX shares declined in the market due to broader market weakness. The company announced that Kathleen L. Quirk will assume the role of President and Chief Executive Officer (CEO) in June 2024. Freeport-McMoRan provided an optimistic outlook for the rest of the year, with expectations of strong sales volumes and cash flows.
