With gold prices on the move, keep an eye on Barrick Gold (GOLD).
After dropping from about $20.50 to $16.88, the gold stock has become severely oversold. Even RSI, MACD, and Williams’ %R are all deep in oversold territory. The last time this stock became this technically oversold, it ran from a low of about $15.50 to just over $20.50.
With the rising risks of a U.S. recession, we’re likely to see even more gold buying. Plus, even global central banks are racing to buy gold. in the first quarter, they bought 228t of gold – 34% higher than the previous record set in 2013. That also follows annual demand of 1,078t in 2022. Also, analysts at UBS believe gold prices could hit $2,100 by year-end; $2,200 by March 2024.
Sincerely,
Ian Cooper
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