With the Federal Reserve indicating doubts about retreating inflation levels, postponing a potential first rate cut to at least May, the US stock markets hesitated just a moment, the S&P500 printing new all-time highs shortly after, and with gold remaining well over US$2,000/oz, Goldshore Resources (TSXV:GSHR)(OTCQB:GSHRF)(FWB:8X00) stayed the course as promised, and announced their updated resource estimate for their Moss Gold Project in Ontario.
Lots of things are happening in the world around us recently, as the Israel-Hamas conflict intensifies to a degree that the rest of the world gets increasingly worried to see Israel crossing some lines regarding the use of proportional violence. Besides this, the Russian invasion isn’t done yet after Ukraine failed to break through Russian lines and conquer Crimea, the BRICS nations intending to move away from the US Dollar as a reserve currency, Argentina just elected a president that makes Trump look like a sophisticated bookkeeper, and lots of areas around the world are recovering from numerous wildfires, although now it is Brazil’s turn.
Just as the Federal Reserve decided to pause their record-breaking rate hiking streak, with gold hovering around US$2,000/oz on a weaker US Dollar and fear for escalating Middle East tensions, Goldshore Resources (TSXV:GSHR)(OTCQB:GSHRF)(FWB:8X00) finally found their strategic partner they were looking for all year.
As Dolly Varden Silver (DV.V)(DOLLF.US) has completed their 55,000m drill program at Kitsault Valley a month ago, the treasury could use some freshly incoming capital, and since the company has no shortage of strong backers, this time shareholder Hecla Mining (HL.US)
In uncertain times, where the Fed gradually seems to be pushed closer and closer to a rate hike pause, potentially followed by rate cuts somewhere in 2024, the Russian conflict keeps aggrevating, and the Chinese government keeps coming with soft measures to restart their economy, Dolly Varden Silver (DV.V)(DOLLF.US)
Although the markets keep digesting mixed signals, with various indicators increasing so much in strength there is even talk of several rate hikes coming up now from the Fed, indicating a soft landing if executed carefully, in the end the rates should come down again when inflation closes in further on the 2% target.
In an increasingly uncertain market environment as a result of the Fed communicating their intentions for more rate hikes, and ever stronger signals of a looming recession, Omai Gold Mines (TSXV:OMG) continues to explore for more gold in addition to their 3.7Moz resources for Wenot and Gilt Creek.
With the threatening debt ceiling default off the table for now, and markets slightly positive because of it, Gold Terra Resource (TSXV:YGT)(OTCQX:YGTFF) (FRA:TXO) managed to raise C$4.6M in the markets through a short form offering. The proceeds of the issued common shares and flow through shares enables the company to follow up on the ongoing drill program at the Con Mine Option Property as part of their Yellowknife project in the Northwest Territories.
It is becoming harder and harder to navigate the economic environment these days. There are so many contradictory factors at play that nobody knows anything for sure these days. The Federal Reserve is contemplating one last rate hike in May on mixed but overall positive data coming in on Friday April 16, 2023, which might be followed by a pause and even rate cuts, in order to provide the economy with a “soft landing”.
The markets keep generating mixed to negative signals: on one side you have high inflation causing lowering demand, higher interest rates, the Federal Reserve shrinking its balance sheet, a record credit crunch, banking crisis, deflating bubbles like real estate, decreasing manufacturing, port activities, lowering wages (although in Europe there is a wage-price spiral going on), in short everything points towards a recession.