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Gold is a 'safer bet than chasing overvalued stocks': FXTM

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(Kitco News) Gold is a better option than "chasing overvalued stocks," writes FXTM chief mark strategist Hussein Sayed. “With yields expected to remain low for a long time, inflation projections likely to head higher in the months to come and geopolitical tensions on the rise, some great ingredients are present for the precious metal to continue attracting inflows,” Sayed says. Gold is very close to its all-time highs of $1,920 an ounce and is looking ready for more gain. “Only $50 away from the all-time high, it is only a matter of short time for the yellow metal to see a new record,” Sayed writes. In the meantime, stocks are continuing to ignore deteriorating U.S.-China relations. “After ordering the shutdown of China’s consulate in Houston and claiming two Chinese hackers targeted U.S. companies working on the virus and stealing information, we are yet to see the Chinese response,” Sayed notes. “The market reaction to the latest developments has been muted … Hopes for another round of U.S. stimulus and better than expected earnings from the big tech firms is keeping the rally alive despite valuations becoming extremely overstretched. But if worsening U.S.-China trade relations lead to re-imposing trade tariffs, then it’s likely to mark the short term top in equities.”

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