[MEDIA] From a technical perspective, the longer a gold...

From a technical perspective, the longer a gold consolidation phase persists, the stronger the breakout move is likely to be. US$3,800 to US$4,000 an ounce is extremely practical, without getting too hyperbolic.

Analysts at Bank of America expect the gold rally to continue, maintaining its forecast that the gold will hit US$4,000 an ounce by the first half of 2026.

With its 3.1 million ounce open pit gold resource Kalkaroo is well-positioned to capitalise on an escalating gold price


Gold: The primary hedge

Tactical: The immediate setup favors gold on three counts—(1) policy uncertainty, (2) the prospect of an earlier U.S. Fed rate cutting cycle, and (3) demand from investors hedging institutional risk. Any short lived U.S. dollar spikes on safe haven flows may translate into consolidation rather than trend reversal, provided the U.S. Federal Reserve stays on its expected course towards lower interest rates, and with that lower funding costs for holding non-yielding assets such as gold bullion.

Structural: Official sector buying remains the quiet backbone of the market, and reserve managers have, in recent years, increased allocations for diversification and sanctions resilience motives. That steady bid has for the past 3 years prevented gold from suffering major setbacks during periods of adverse dollar and rate movements. Investor flows have been more stop start, but the 'why allocate' case has broadened from inflation hedging to institutional hedging, which is less sensitive to monthly prints and more tied to regime perception. The increased focus on incoming U.S. rate cuts and with that lower opportunity costs have triggered a renewed demand for gold bullion-backed ETF investments, with total holdings recently hitting a 2 year high.

Risk management lens: The bear case requires several things at once: a firm legal block that decisively lowers governance risk; upside inflation surprises that halts rate cut speculation and push U.S Treasury real yields materially higher without denting risk assets; and a visible throttling back of worldwide Central Bank purchases.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.