NEW YORK ( TheStreet) -- Gold recently had a technical breakout surpassing $1,150 an ounce and history suggests that a pullback is likely to follow. Despite this, there are three reasons to consider adding the precious metal to a portfolio.First, gold is a traditional hedge against inflation and the U.S. dollar. A combination of massive stimulus spending and excess printing of dollars by the government is ultimately going to lead to inflation and a weak dollar. With the inverse relationship between gold and the dollar, gold is likely to reap the benefits of the inevitable.
Gaining Easy Gold Exposure Through ETFs
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