USAU - U.S. Gold Corp. May Not Have Completed Its Descent
2023-05-02 04:54:08 ET
Summary
- Investors should keep a Sell rating on U.S. Gold Corp. as gold is expected to trade lower.
- U.S. Gold Corp. is a US gold exploration company with 3 projects in Wyoming, Nevada, and Idaho, all located in friendly, well-known mining courts.
- This stock is quite sensitive to gold prices as measured by high gold beta, while stubborn inflation and resilient labour market conditions are paving the way for strong headwinds.
- As long as core inflation is tough to abate and jobs support consumption [70% of the US economy], interest rates should remain elevated, which bodes badly for gold prices, let alone U.S. Gold Corp.
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U.S. Gold Corp. May Not Have Completed Its Descent