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Opinion with Peter Hug

The Fed gives the green light to gold rally

Peter Hug

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

(Kitco News) - Fed Chairman Powell indicated the Fed would do what was necessary to keep the economy rolling, adding new momentum to gold prices. Reading between the lines, he said: “We are your back-stop and will create whatever liquidity is needed.” Gold has held our $1,497 support area and is primed to close above our resistance point at $1,522. With the macro environment deteriorating: i.e., China ratcheted up tariffs today, Brexit, Hong Kong, and the weakness of European bank balance sheets, you can now add a supportive U.S. central bank. To say I am constructive on gold is an understatement. Silver is also beginning to lift and we continue to stay with our short term target of $18.50.

By Peter Hug

Contributing to kitco.com

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