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Gold price below $2K: Profit-taking triggers sell stops - RBC Wealth Management

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Gold prices are below $2,000 an ounce as profit-taking is triggering sell stops, according to RBC Wealth Management managing director George Gero. “U.S. stimulus legislation stalled, global stocks better, pandemic headlines with Russia now featuring a vaccine. Profit-taking in gold sets off sell stops as ETF sellers add to volatility,” Gero writes. Most recent gold buyers are also very price sensitive, which adds to volatility, Gero says. “Buyers may wait for selling to subside as selling may bring margin calls and follow through-selling next day,” he notes. However, the longer-term gold and silver expectations remain bullish with Gero still projecting gold at $2,100 an ounce and silver at $30 an ounce. “Global worries, U.S.-China tensions, the pandemic, U.S. elections headlines, and the G7 meeting remain for longer term gold to reach $2,100 and silver $30.00.”

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