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Now back up to $1,772.69, analysts say it could see $1,900 again soon.
All thanks to a potential peak in the U.S. dollar, with a shift in interest rate expectations. “Right now, everything is coming together for gold,” said Adam Button, chief currency strategist at Forexlive.com, as quoted by Kitco.com. “If inflation has truly peaked, then so has the U.S. dollar and that will continue to support gold prices.”
From here, analysts at UBS say gold could see $1,900 by the end of 2023. “Not only does UBS expect the Fed to end its aggressive tightening cycle in 2023, but it is looking for the central bank to cut rates by 175 basis points by the end of the year,” added Kitco.com.
If that’s the case, investors may want to start buying beaten-down gold stocks.
Barrick Gold (GOLD)
Barrick Gold is one of the biggest companies in the gold industry.
Although risk management is one of the simpler topics to grasp, it seems to be the hardest to follow for most traders. Too often we have seen traders turn winning positions into losing positions and solid strategies result in losses instead of profits. Regardless of how intelligent and knowledgeable traders may be about the markets, their own psychology will cause them to lose money. What could be the cause of this? Are the markets really so enigmatic that few can profit? Or is there simply a common mistake that many traders are prone to make? The answer is the latter. And the good news is that the problem, while it can be an emotionally and psychologically challenging one, is ultimately fairly easy to grasp and solve.
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