(C) Reuters. Think Gold is Due for a Bounce? Buy These 3 Stocks
A weakness in the US dollar and Treasury yields have led to an increase in demand for bullion this week. At the same time, disappointing jobless claims data worked as solid support. Thus, gold stocks such as Alamos Gold (NYSE:AGI), AngloGold Ashanti (AU), and Franco-Nevada (FNV) could be smart additions to your portfolio at this juncture.Gold has gained nearly 1.5% for the week so far, after posting losses in the previous two weeks. Overall, there has been buying pressure and spot gold hit a high of $1,758.45 an ounce yesterday. Weakness in the U.S. dollar and treasury yields, coupled with disappointing jobless claims data has increased gold’s appeal to investors.
According to Jeffrey Christian, managing partner of CPM Group, “There is a real race between the variants and the vaccinations, and right now the variants seem to have the upper hand on a global basis.” Moreover, the Federal Reserve Chair Jerome Powell warned that an uptick in COVID-19 cases could slow the recovery. These developments bode well for the precious metal.
The best strategy to diversify your portfolio in such scenarios is to invest in fundamentally sound gold stocks. I believe Alamos Gold Inc . (AGI), AngloGold Ashanti Limited (AU), and Franco-Nevada Corporation (FNV) are well-positioned to gain if the precious metal is able to hold its prices at the current level.
Think Gold is Due for a Bounce? Buy These 3 Stocks
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