Gold prices to skyrocket on overdue volatility in 2020
(Kitco News) - From a macroeconomic perspective, several of the longer-term problems that would be bullish for gold will likely manifest in 2020, including a recession and an escalation of the trade wars tensions with China, this according to Peter Hug, global trading director of Kitco Metals.
“From a physical perspective, if you’re an investor from a medium to longer term perspective, you just stay with this market and if your holdings are under your percentage allocation that you were looking to apply to your portfolio from the perspective of gold, then you just add to the position at these levels because I think 2020 is going to be a very, very volatile year and I think it’s going to be very positive for the metals,” Hug told Kitco News.
Hug noted that the recent pressure on precious metals can be attributed to selling action from institutional investors following this summer’s rally up to the $1,500 an ounce level.
“Most of the large funds and the ETFs were positioned long…it would be logical that they would sell and take their profits and that’s why you’re seeing this weakness in the market,” he said.