Gold's recent retracement may be overdone, Richard Bernstein Advisors says

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Gold's recent retracement may be overdone as the National Federation of Independent Business (NFIB) Uncertainty Index continues to stabilize, Richard Bernstein Advisors (RBA) said in a post on X. The firm's chart compared the NFIB Uncertainty Index with gold's year-over-year

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Richard Bernstein Advisors assessed that the recent decline in gold prices is excessive, suggesting that the stabilization of the NFIB Uncertainty Index could signal a rebound. Given the correlation between NFIB indicators and year-over-year gold returns, the current correction is likely an overreaction. Investors should reevaluate the appeal of gold as a safe-haven asset amid persistent macroeconomic uncertainty.

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The firm highlights that historically, the NFIB Uncertainty Index serves as a critical leading indicator for gold price trends. As the index stabilizes, the historical divergence suggests that gold is currently undervalued. This misalignment represents a strategic entry point for investors hedging against ongoing economic volatility.

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