Why Forecasts for Gold Prices May Be Predicting a Rise This Year Due to Weakening Dollar

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Jan 27, 2021, 08:45 ET

PALM BEACH, Fla., Jan. 27, 2021 /PRNewswire/ -- Since it January of a new year, it's time for Wall Street analysts and experts to chime in on predictions for the coming year, in stocks, bonds and, of course, metals… such as gold. The projections can be based on similar historical occurrences, where what happened before should happen again because when the present circumstances existed before 'this is what happened". They can go back several years of even decades. Other viewpoints point to situations that are viewed as well observed "If" "Then" rules. (i.e., IF this happens, THIS is the result"). Some analysts from both these viewpoints have looked into their crystal balls and have projected that gold will hit $2,300 in 2021. Here are some examples. An article on Yahoo relied upon its belief that the Dollar will weaken in 2021. The article mentioned: "We are in a similar setup to the post-trendline breakdown of gold in 2002/2003. Consequently, I believe the dollar is on the verge of an accelerated decline towards 80. The weakening dollar should push gold higher into April/May 2021 before the next 6-month cycle correction. In 2002/2003, the US was coming out of recession, just like now. The recent $900-billion relief package will not be the last. I expect one or two more programs next year – this should continue to deflate the dollar and push hard assets higher." Active stocks in the mining markets this week include First Majestic Silver Corp. (NYSE: AG), Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Eldorado Gold Corporation (NYSE: EGO) (TSX: ELD), Alamos Gold Inc. (NYSE: AGI) (TSX: AGI), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG).

"The 6-month cycle in gold likely bottomed at $1767.20 in November. Prices are climbing the "wall of worry," and I expect a breakout above the intermediate trendline… The trigger event to push gold through the trendline could arrive any day, but the minimum target on a breakout is $2300." And another viewpoint from SpottMoney, using the historical prospective, also agreed with the Yahoo conclusion, saying: " (We note the time) period 2005-2011, the most recent extended bull market run for gold. Notice that, even if you include the crazy year of 2008, the average annual gain for gold was 20.4%. And now consider the annual gains since the "sea change" of late 2018. The year 2019 posted a gain of 18.9% and, as you know, 2020 came in at 24.8%... this by no means guarantees another gain of 20% for gold in 2021, but it's certainly a starting point for your consideration.

Golden Independence Mining Corp. (CSE: IGLD) (OTCQB: GIDMF) BREAKING NEWS: GOLDEN INDEPENDENCE INTERSECTS 2.21 G/T GOLD AND 13.2 G/T SILVER OVER 60 FEET AT INDEPENDENCE PROJECT - Golden Independence (the "Company") is pleased to announce further drill results from its recently completed 2020 resource expansion drill program at the Independence project, south of Battle Mountain, Nevada. Results from these four reverse circulation (RC) holes include:

2.21 g/t gold and 13.2 g/t silver over 60 feet (18.3 metres)
1.61 g/t gold and 10.3 g/t silver over 20 feet (6.1 metres)
0.53 g/t gold and 6.1 g/t silver over 115 feet (35.1 metres)
0.49 g/t gold and 4.7 g/t silver over 185 feet (56.4 metres)

"The second set of assay results include a significant 60 foot interval of +2 g/t gold," commented Golden Independence President Tim Henneberry. "The results from the first 7 holes have met Company expectations, verifying the historic results with longer intervals of +0.5 g/t gold along with some good intervals grading 1 to 2 g/t gold. These results continue to expand the mineralized footprint at Independence and the historic oxide resource." he continued.

"This second set of assay results further supports our belief that we will be able to significantly expand the historic oxide resource at the Independence project in the near term." remarked Golden Independence CEO Christos Doulis. "We anticipate receiving assay results from an additional 20 RC holes recently drilled at the Independence project culminating in an NI 43-101 complaint resource for the Independence project at the end of the quarter." Read this entire release for the Golden Independence news at: https://www.financialnewsmedia.com/news-igld/

Other recent developments in the mining markets include:

Eldorado Gold Corporation (NYSE: EGO) (TSX: ELD) and QMX GOLD CORPORATION (TSX-V: QMX) recently announced that they have recently entered into a definitive arrangement agreement (the "Agreement") pursuant to which Eldorado will acquire all of the outstanding shares of QMX (not already owned by Eldorado) for total consideration of approximately C$132 million on a 100% and fully diluted basis or C$0.30 per QMX share (the "Arrangement"). Eldorado currently owns 68,125,000 shares of QMX, or approximately 17% of QMX shares outstanding, which it purchased at C$0.06 per share in a private placement on December 30, 2019.

Under the terms of the Arrangement, each holder of QMX shares will receive, for each QMX share held, (i) C$0.075 in cash and (ii) 0.01523 of an Eldorado common share (the "Arrangement Consideration"), for total consideration of C$0.30 per QMX share (based on Eldorado's closing price on January 20, 2021). The Arrangement Consideration represents a 39.5% premium to the closing price of QMX shares on the TSX Venture Exchange (the "TSX-V") on January 20, 2021.

First Majestic Silver Corp. (NYSE: AG) recently announced the Company's fourth quarter and full year 2020 production results, as well as production and cost guidance for 2021. The Company's fourth quarter and full year 2020 financial results are scheduled to be released on February 18, 2021.

First Majestic posted another strong year in 2020 despite the many challenges brought on by the COVID-19 pandemic and Mexico's two-month national shutdown," said Keith Neumeyer, President & CEO. "Nevertheless, our team quickly adapted to the new normal and outperformed in the second half of the year. During the fourth quarter, silver production at La Encantada and San Dimas again exceeded our expectations. At La Encantada, silver production hit a six year high due to continued improvements in recoveries and underground production from the caving areas. San Dimas had a strong close to 2020 by producing 3.5 million silver equivalent ounces in the fourth quarter and the highest quarterly silver production while under our ownership."

Alamos Gold Inc. (NYSE: AGI) (TSX: AGI) recently announced that it has completed an agreement to acquire Trillium Mining Corp. ("Trillium") for cash consideration of C$25 million. Trillium holds a large land package comprised of 5,418 hectares ("ha") directly adjacent to, and along strike from the Island Gold Deposit within the Michipicoten Greenstone Belt.

The acquisition has significantly expanded the Company's land package around the Island Gold mine to 14,929 ha, a 57% increase (see Figures 1 and 2). This newly acquired land includes significant exploration potential in proximity to existing high-grade Mineral Resources and regionally. Based on the current geological interpretation of the E1E structure which hosts the Island Gold Deposit, there is strong potential for the structure to extend onto the Trillium mineral tenure. This is further supported by recent drilling, including the best surface exploration hole to date, MH25-04 grading 28.97 grams per tonne of gold ("g/t Au") (26.89 g/t cut) over 21.76 metres ("m") true width, and MH25-03 grading 15.38 g/t Au (14.19 g/t cut) over 15.02 m (both previously reported).

IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) recently announced assay results from its delineation diamond drilling program at the Gosselin Zone discovery, located approximately 1.5 kilometres northeast of the Côté Gold Project ("Côté", "Project"). The Gosselin delineation drilling program is being undertaken as part of the Côté Gold Joint Venture Project, a 70:30 joint venture between IAMGOLD and Sumitomo Metal Mining Co., Ltd. ("SMM"). Côté, located 125 km southwest of Timmins and 175 km north of Sudbury, Ontario, Canada, is currently under construction with first gold production anticipated in the second half of 2023 (see news release dated July 21, 2020).

Since the fourth quarter of 2019, a total of thirty-three (33) diamond drill holes totaling 13,735 metres were completed as part of the resource delineation drilling program. The drill holes were variably completed from collar positions located on either lake ice, or on a floating barge deployed in Three Ducks Lake and from land based drill pads on the north shore of Three Ducks Lake or on the Young-Shannon peninsula.

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