Peter Hug is on Kitco News to talk gold as markets wait for the release
of the FOMC minutes on Wednesday. Fed Chairman Bernanke spoke on Tuesday
and reaffirmed the Fed would keep its benchmark interest rate at or
near zero for a "considerable time." "I think the fed wants to taper...
[but] I'm still in the camp that tapering won't even begin to be on the
agenda until the spring of next year," Hug says. "And it won't be an $85
billion bond pullback immediately...this could take another year before
the $85 billion in bond purchases is completely off the table." Looking
at the metals markets, Hug says the technicals are "terrible" and the
overall feel remains heavy. "The catalyst for gold, the next major
leg...should be an inflationary leg," he says. "...Assuming there are no
major geopolitical or financial risks in the immediate horizon, I think
it might actually be negative for the metals. I think we're in a
deflationary environment." With regards to government data, Hug says he
doesn't trust a lot of the numbers that are released but says he'll be
keeping a close eye on Christmas sales numbers. Watch now to get his key
levels for gold & silver and see how Hug would position his cash.
Kitco News, November 20, 2013.
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