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Because the Federal Reserve’s asset tapering activity is expected to begin this month, it could lead to a further decline in gold prices. According to Citigroup Inc. (NYSE:C), ‘short gold’ is an appropriate pain trade over the medium-term. In addition to C, several other Wall Street analysts have turned negative on gold’s price performance this week.
Given the bearish market sentiment around gold, we think it could be wise to short gold mining stocks NovaGold Resources Inc. (NG), Equinox Gold Corp (EQX), and Osisko Gold Royalties Ltd . (NYSE:OR).
