5 Gold Stocks Poised to Gain as Yellow Metal Targets New All-Time Highs
Investing.com | Nov 30, 2023 10:33
- Gold has returned above $2,000 this week
- New record highs for the yellow metal cannot be ruled out as Fed rate cut looms
- So in that context, we will discuss the 5 stocks that could benefit from a rally in gold prices
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After testing the key threshold of $2,000 an ounce timidly last week, gold confirmed a break above this major obstacle this week, reaching a high of $2052 on Wednesday, marking its highest level since May.
Indeed, expectations of a dovish Fed pivot are intensifying, weakening the US dollar and supporting the yellow metal.
Falling Inflation and Dovish Fed Comments Fuel Rate Cut Speculation/h2
After the recent lower-than-expected CPI data, comments by the usually dovish Fed member Christopher Waller sparked bets on Fed rate cuts in early 2024.
He suggested that a rate cut might be appropriate in a few months' time if inflation continues to slow.
As a result, investors are now factoring in a more than 46% probability that the Fed will cut rates at its March 20, 2024 meeting, according to the Investing.com rate monitor tool.
Source: Investing.com
If the Fed is indeed poised to start a rate-cutting cycle, gold has a good chance of continuing to rise and reach new record highs, above the previous all-time high of May 2023, at over $2085.
If this proves to be the case, we can expect gold stocks to make a strong comeback, and investors who subscribe to these forecasts would do well to include them in their portfolios.
Gold Stocks to Watch if Gold Heads for New Record Highs/h2
In this article, we'll take a look at several gold miner stocks, to determine which might represent the best opportunity for 2024.
To do so, we've used InvestingPro investment strategy platform is a great help here. It contains data on thousands of financial metrics and tens of thousands of stocks, enabling in-depth analysis of every investment option.
There's also an advanced screener for finding stocks that meet specific criteria.
You can easily determine whether a company is suitable for your risk profile by conducting a detailed fundamental analysis on InvestingPro according to your own criteria. This way, you will get highly professional help in shaping your portfolio.
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Disclosure: The author does not own any of the securities mentioned in this report.
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