Gold Breakout Catalyst, Uranium and Lithium Stocks to Watch

Gerardo Del Realyoutu.be

Gold has taken a tumble in July, even dropping below US$1,700 per ounce for a short period of time.

Gerardo Del Real, co-owner of Resource Stock Digest and Digest Publishing, said the metal’s performance has been disappointing for those in the US, but the story is different elsewhere.

“Gold has actually behaved beautifully as a currency hedge for most of the other currencies,” he said.

“I think that if you are US-based, you’re absolutely frustrated that gold hasn’t ran to all-time highs yet,” Del Real told the Investing News Network. “I still see that in the cards — I think we’re very close to that with the (US Federal Reserve) being as aggressive as it’s being with inflation and rate hikes.”

The US Federal Reserve meets this week from Tuesday (July 26) to Wednesday (July 27), and is widely expected to raise rates by 75 basis points, although a full percentage point could be in the cards.

Del Real believes this hawkish stance from the central bank won’t last long. “I think we’re about a quarter or two away from the Fed not being able to be as aggressive as it’s being with the rate hikes right now,” he said, explaining that he sees the central bank changing its tune as midterm elections approach in the US.

“I think that’s when gold is going to break out,” he added.

Del Real is also bullish on uranium and lithium. Speaking about the former, he pointed to the commodity’s rare bipartisan support at a global level, mentioning UEC (NYSEAMERICAN:UEC), Skyharbour Resources (TSXV:SYH,OTCQB:SYHBF) and Labrador Uranium (CSE:LUR,OTCQB:LURAF) as companies he’s watching.

In terms of lithium, Del Real said Goldman Sachs’ (NYSE:GS) negative market call has created a buying opportunity, and named Patriot Battery Metals (CSE:PMET,OTCQB:PMETF) as a favorite in the sector.

Watch the interview above for more from Del Real on gold, uranium and lithium.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Skyharbour Resources is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.