With Money Pouring Into Gold ETFs, Peter Hug Asks ‘Where’s The Physical Buyer?’

Gold was taking a breather late Wednesday, after news hit that the U.S. debt limit will likely be extended. The yellow metal had seen a volatile trading session until the unexpected U.S. debt-limit-extension reports. “Looks like they kicked the can until December, which was expected with the news of the hurricanes. That said, the market has been pricing in some risks, and the debt ceiling being extended takes some of that risk off the table," explained Peter Hug, global trading director for bullion dealer Kitco Metals. That would keep the government operating and keep hurricane-damage funds flowing, he said. But there is another piece to the gold story. While investors poured $1 billion into the largest exchange-traded fund (ETF) backed by bullion last week, the most since 2016 -- Hug said the physical gold buyers are nowhere to be seen. "A lot of the move in the precious metals market is not because of physical buyers - we are yet to see the reemergence of the physical buyer in market. That physical buyer is missing from the equation," he said. (show less)

Gold was taking a breather late Wednesday, after news hit that the U.S. debt limit will likely be extended. The yellow metal had seen a volatile trading session until the unexpected U.S. debt-limit-extension reports. “Looks like they kicked the can until December, which was expected with the news of the hurricanes. That said, the market has been pricing in some risks, and the debt ceiling being extended takes some of that risk off the table," explained Peter Hug, ... (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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