Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
We continue to be encouraged by the price action of gold in the face of a strengthening U.S. dollar. Typically, gold and the dollar move in opposite directions, but so far this year gold is up more than 6 percent, reaching a year-to-date high on Monday. At the same time the dollar has appreciated about 4 percent.
Gold has also been appreciating against other major currencies in the developed world, as the chart above shows. The eurozone, Britain and Japan are all struggling with rising fiscal deficits and the after-effects of the global financial crisis.
In fact, the price of gold in euros made another record high last week as the worry of a sovereign debt default by Greece and other indebted countries in Europe continues to threaten the stability of the continent’s primary currency.
In our view, this gold breakout against the world’s primary paper currencies highlights gold’s growing allure as a store of value against further currency debasement caused by governments spending with little restraint. Gold appears to be reassuming its role as an alternative currency unencumbered by political liabilities.
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