Opinion with Peter Hug
Gold's Weakness Suggests Investors Continuing To Raise Liquidity
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Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold continues to experience pressure as investors generate liquidity in the wake of the global equity shakeout. The bounce in equity valuations yesterday was actually a negative for gold prices, as investors assumed the recent drop was merely a retracement, as with past sell-offs, and jumped back into the equity space. Gold, a proxy for liquidity, came under selling pressure as investors raised cash to average into the equity trade. The dollar has gained, as foreign investors also piled into yesterdayâ€™s open swoon, on the indexes. The volatility in the equity space is not over and gold remains a viable hedge. Technically, gold needs to hold the $1,320 area with $1,332 a target for a break higher.