Opinion with Peter Hug
Gold Holding In Face Of Equity Meltdown
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - The sell-off in equities gained momentum overnight as global investors stewed over the weekend following Friday’s carnage. The market was already stretched and the rise in the yield curve and a hawkish Fed was the catalyst that created the sell-off. Metals reacted as in past equity market sell-offs, with investors initially raising cash to meet margins and pick up perceived value. Today will be a key indicator on whether this sell-off is a healthy correction or a more ominous trend. A sell-off at the open with a retracement to a positive print by the close would suggest the former. Gold should find support at these levels if the equity market stabilizes. Should this rout in the stock market continue, gold may continue under pressure as the “sell everything” to raise cash mantra unfolds.