Upcoming Bank Earnings Season Could Keep Gold Prices Elevated

April 11, 2023 at 10:02 AM EDT

The recent collapse of several banks in the US has resulted in a significant drop in US bank stocks and the upcoming quarterly earnings season will either make or break them.

The results from US banking giants begin mid-April when Wells Fargo, JPMorgan Chase & Co and other major lenders are due to report their earnings.

Although bank shares have somewhat rebounded following the string of collapses in March, the S&P 500 bank index is still down over 15% since March 8. Not to mention, the bank index is headed for its largest monthly percentage drop since the onset of the 2020 pandemic.

The concerns about banks and their financial stability have sparked fears similar to those that arose following the collapse of the US housing market, which led to the global financial crisis from 2007 to 2009. As US regulators are scrutinizing the reasons behind the bank failures, the price of gold is once again surging and aiming for a new high of $2,000.

The Fed recently declared that we are nearing the end of this cycle’s rate hikes, which will result in a dip in US government yields and the dollar index, benefiting gold prices.

At the same time, concerns of financial contagion may keep gold around all-time highs. Record-high prices will likely have an influence on domestic retail demand in the future. But, central bank purchases combined with ETF inflows may more than compensate.

Notwithstanding increased inflation, mounting threats to the financial system, and geo-political instability, central banks might remain bullish and continue to be net purchasers in 2023.

Money markets are already pricing in March rate hikes as peak rates, with a 100 basis point decrease expected by year’s end. Gold prices have always done well when the Fed lowers interest rates.

Gold prices may continue to rise as fresh occurrences occur on a daily basis and the likelihood of a financial crisis extending to the rest of the economy grows, which will benefit gold stocks.

A Canadian Miner Expands its Portfolio of High-Grade, Low-Risk Gold

In an increasingly turbulent global market, gold has proven to be a great investment for those seeking a safe haven. According to seasoned market analyst Peter Grandich, the true potential is in mining companies since mining shares relative to gold haven’t been this cheap in a few decades.

Due to geopolitical difficulties and growing mining royalties, the number of secure and economical mining countries has reduced in recent years, making North America an appealing alternative.

Fury Gold Mines Limited (TSX:FURY) (NYSE-A:FURY) is a well-funded gold exploration company located in two of Canada’s most prolific mining regions: Quebec’s James Bay Region and Nunavut’s Kitikmeot Region, including its flagship Eau Claire project and its wholly-owned Lac Clarkie project, and the Éléonore South joint venture project with Newmont Gold, a large-scale untested gold-in-till anomaly with “a tremendous amount of exploration upside.”

The company has been concentrating its efforts on its flagship Eau Claire project near James Bay. A preliminary economic assessment (PEA) for the project was performed earlier in 2018, revealing an M&I Resource of 808,000 ounces (oz) of gold at 6.65 g/t Au and an additional Inferred Resource of 458,000 oz at 7.48 g/t Au.

On April 11, Fury revealed its 2023 exploration plan for its Eau Claire project. The company plans to drill between 15,000 and 20,000 meters (m) this year to continue expansion of the high-grade Eau Claire resource, follow up on the 2022 success at the Percival Prospect 14 kilometers (km) to the east of Eau Claire, and advance early-stage exploration targets around the Cannard Deformation Zone to the drill-ready stage.

Fury‘s updated geological interpretation of the Eau Claire resource, as well as its focus this year on the fold geometry at the Hinge Target, has resulted in a 25% increase in the mineralized footprint. The mineralized system is still open in all directions and has returned intercepts of 5.75 gold over 4m, 22.77 g/t gold over 1.5m, 9.36 g/t gold over 3m, and 5.86 g/t gold over 3.5m. The Hinge Target exploration plans for 2023 will focus on continuing to expand the mineralization footprint to the west and updip.

Fury Gold Mines Limited (TSX:FURY) (NYSE-A:FURY) recently provided an update on targeting at its wholly-owned Lac Clarkie project, which is located immediately to the east of Eau Claire. The company has defined eight gold anomalies from a B-horizon soil sampling program. Six of the targets are within the Cannard Deformation Zone, which has many gold occurrences along its more than 100 km mapped range, including the Eau Claire Deposit and the Percival Prospect. Fury is working to prioritize these newly identified targets for further investigation in 2023, with the goal of having a number of them drill-ready.

Fury is well-funded for planned exploration after a recently completed private placement for C$8.75 million in cash, C$16.2 million in the treasury and an investment in 59.5 million Dolly Varden Silver shares.

For more information on Fury Gold Mines Limited (TSX:FURY) (NYSE American:FURY) and its projects, please visit this link or the company’s website.

Featured Image @ Depositphotos

Disclosure:

This article is issued on behalf of Fury Gold Mines Limited (“Fury”). The article is a paid communication of Fury which is solely responsible for all factual matters about Fury contained in this article. David Rivard, P. Geo., Fury’s Exploration Manager is the qualified person who has reviewed the technical contents of this article in relation to all Quebec projects. Bryan Atkinson P.Geol., Fury’s SVP of Exploration is the qualified person who has reviewed the technical contents of this article in relation to Committee Bay. Market Jar Media Inc. has or expects to receive from Fury’s digital marketing agency (Native Ads Inc.) sixty-eight thousand and four hundred Canadian dollars in connection with the dissemination of this article. The owners and management of Native Ads and/or Market Jar do not currently own securities of Fury butmay acquire or dispose of securities in Fury from time to time without notice or restriction. Market Jar has not compensated the author of the article nor is Market Jar responsible for its contents. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of us and full legal disclaimer as set forth here. This article is not investment advice and persons interested in learning about Fury and the risks and challenges of its business should review Fury’s continuous disclosure record found at www.sedar.com.

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