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