Opinion with Peter Hug
Gold Remains Resilient
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold has shown remarkable resilience in the face of a stronger dollar. Geopolitical tensions have created some support but the oil price surge may create an acceleration of inflation, within the context of the Fed now prepared to look at their inflation target in a symmetrical fashion. This may prove to be a head fake to the upside and we suggest waiting for confirmation on a close above the $1,322 level for an acceleration of momentum. Silver continues to be well bid and the silver/gold ratio is beginning to drop. Should gold break higher, we believe silver offers the best risk/reward play. Retail inflation data, should it spike, will also add to the momentum in the commodity space.