Opinion with Peter Hug
Gold Remains Attractive
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Just returned from an investment conference in Bermuda, where the mood among some of the biggest names in the industry was definitely bullish. To be taken in context, most players in the metals space are generally neutral in a worst-case scenario but almost always bullish albeit sometimes with the caveat “if you are a long-term investor”. Metals dealers do not make money telling investors that gold is a negative play. But as we discussed last week, the macro landscape remains constructive for higher prices in the short term. The unsettled global equity market, Italy’s budget issues and the unresolved Brexit issue all combine in attracting flows into gold. The mid-term election a few weeks away may produce a swing in the power dynamics in Washington, with Democratic gains creating at best a lame-duck administration. Technically our level of $1,220 held up and $1,237 was touched overnight. A break here may see a quick move to the $1,250 level. Palladium continues to power on touching an all-time high in overnight trade.