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  5. AEM: What do you see as the cause of the price of gold increasing right now? [Agnico Eagle Mines Limited]
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Q: What do you see as the cause of the price of gold increasing right now? How long will it continue? Do you like the producers such as AEM or do you prefer bullion? Thanks for you guidance.
Ian
Asked by Ian on April 05, 2024
5i Research Answer:

Gold moves with interest rates and the US dollar, as well as with money printing. Like in 2008, it took a while (to 2010) before gold started to really react to all the stimulus that was put in place during the financial crisis. Now, the same thing may be happening with post-covid stimulus making its way through to gold. The prospects of lower interest rates also helps gold, and we have seen news of China buying as well as central banks buying globally. We cannot time how long it will continue but gold does move on sentiment, and positive sentiment could certainly continue longer. In a rally, we prefer stocks over bullion. Bullion can work better in a 'crisis' but we do not think we are setting up for that. AEM, KRR and FNV look good to us.