Opinion with Peter Hug
Gold Prices Reflect Nervousness Over Government Shutdown
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - The markets continue to reflect nervousness about the possibility of a government shutdown at midnight tonight. The rhetoric ratcheted higher overnight as Democrats continue to demand a deal on DACA as part of the funding extension. Dollar selling accelerated and gold pushed higher before the Asian close. Volatility will increase throughout the day and traders are likely to go into the weekend long as a “just in case” trade. It is difficult to put a true value on the overnight move when it is predicated on a hedge bet. A funding agreement could reverse the move quickly but there is also considerable upside should the Federal government shut down. Place your bets.