B2Gold Corp. (BTG) operates as a gold producer with three operating mines in Mali, Philippines, and Namibia. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. On the other hand, Yamana Gold Inc. (AUY) operates as a precious metal producer. It has gold and silver production, development stage properties, exploration properties, and land positions throughout America.
Since the Fed is expected to raise interest rates several times this year, the opportunity cost of holding non-yielding bullion is expected to increase. However, spot gold was roughly at $1,813.73 per ounce on continued concerns over surging inflation, geopolitical instability, and rising oil prices. The demand for gold is primarily rising because it allows investors to hedge their portfolios against uncertain market conditions. The falling stocks and rising bond yields should drive the safe-haven demand for gold further. Therefore, both BTG and AUY should benefit.
