This One Sentence From Yellen Caught My Attention - Peter Hug

Federal Reserve Chair Janet Yellen on Wednesday sounded a more dovish tone on U.S. monetary policy, which made many investors “wrong-footed” in the marketplace and was modestly supportive for gold. After a recent beatdown that pushed prices to a four-month low on Monday, the safe-haven metal was also due for a short-covering and bargain-hunting bounce, according to Kitco’s global trading director Peter Hug. Gold prices eked a modest gain Tuesday, finishing the day well down from the session high. August Comex gold was last up $4.00 an ounce at $1,218.80. Commenting on Yellen’s testimony before the House Financial Services Committee, Hug said, ‘There was one sentence that caught my attention. She is looking for some help from the fiscal side here….and it becomes more questionable how effective the fiscal plans are.’ ‘If the Fed does continue to raise it will be extremely modest,’ he added. Hug was also looking for gold to clear $1,220, now that it has, the veteran trader said it might still not be enough. ‘I would like to see it close above [$1,220] and have momentum and see a follow-through move tomorrow.’ On the topic of silver, Hug said that the metal needs gold’s help right now. ‘Silver has come back. I think silver has some issues at $16 an ounce but at this point, it needs gold to help it along. So, if we can get gold testing the $1,227 level, I see silver at $16.40- $16.50.’ September Comex silver was last up $0.155 at $15.90 an ounce. (show less)

Federal Reserve Chair Janet Yellen on Wednesday sounded a more dovish tone on U.S. monetary policy, which made many investors “wrong-footed” in the marketplace and was modestly supportive for gold. After a recent beatdown that pushed prices to a four-month low on Monday, the safe-haven metal was also due for a short-covering and bargain-hunting bounce, according to Kitco’s global trading director Peter Hug. Gold prices eked a modest gain Tuesday, finishing the day ... (read more)

 
 
For Pete's Sake!

For Pete's Sake!
From the latest market-making swings to the forward-looking important events that could impact the markets, For Pete's Sake with Peter Hug breaks down the news. He reviews the latest information coming out of North America, Europe and Asia to help you decide how to play the week. Tune in every week to get his key price ranges for gold and find out why he hates to talk about the Fed.

 

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