New Found Gold Corp V.NFG

RE:Bank of Canada and the Fed

[AlwaysLong683]

AUSTIN48 wrote: Will raise rates in July....the catalyst for Gold and NFG

Rising interest rates typically tranlates into the strengthening of that country's currency.

For example, since the FED raised interest rates by 75 basis points on June 15, the US dollar has been quite strong, even vs. the Canadian dollar where the boom in oil and gas is also seen as a positive to our so-called "petro-dollar" (i.e., when oil and gas prices go up, Canada is seen as a safer destination for fixed income securities since oil and gas companies make up a disproportionate % of our market vs. most other countries). Nonetheless, over the past month, the Canadian Dollar has dropped from around 0.80 USD to around 0.77 USD. Other currencies have been hit as well.

I expect the BOC to raise rates by 75 basis points this month, but I also believe the FED will boost theirs at least another 50 bp. A strong U.S. dollar is not very good for the gold price as gold is priced in US dollars on the world market, thus costing other nations / buyers more in their own currency to purchase an ounce of gold, which can reduce demand.

In my view, Inflation is what to look for to boost the price of gold, and I believe the price of gold will increase by a signifiant amount, but wouldn't want to venture a guess as to when.