Make Kitco Your Homepage

Market In "Panic Mode"; Gold Not Done Rallying Yet

Kitco News

(Kitco News) - Gold is without doubt in a bull market, and the overall landscape is constructive for the yellow metal, even at current levels, this according to Bill Baruch, president of Blue Line Futures.

“Gold, overall, it’s a long-term constructive landscape, so pullbacks are just a matter of holding technical levels and holding technical support and that’s what’s going to be important over the near-term,” Baruch told Kitco News.

Headwinds to gold could include rising treasury yields in the future, Baruch added.

“One of the ways I’m hedging gold is by building a December put position in the 30-year bond,” he said.

Short-term, Baruch sees the possibility of a turnaround in the bond market that he said is driven by fear.

“I think we are in a little bit of a panic mode right now, I think the U.S. data is not as bad as people fear. I think we could start to turn a bit of a corner,” he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.