Gold's slowdown - Is it just a pause ahead of a major lift-off?
(Kitco News) - The Dow is inching closer to 28,000; it seems we are closing in on a resolution on the China-US trade deal; talks of a recession in 2020 have quieted down and today's retail sales report came in slightly above market expectations... it just "looks" like everything is rosier...
Much to gold and silver's chagrin… with trader and investors risk appetite having up-ticked just a bit late this week, it's proving to be a negative for the safe-haven metals. December gold futures were last down $6.10 an ounce at 1,467.30. December Comex silver prices were last down $0.108 at $16.920 an ounce.
For Peter Hug, global trading director for Kitco Metals, this is not a time to wallow on the metal’s slowdown but a time to “buy,” if you are looking to add to your position.
In my interview this week, Hug said, “[I]f you’re an investor from a medium to longer term perspective, you just stay with this market. If your holdings are under your percentage allocation…[t]hen 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.”
The market trades a lot on psychology Hug explained. “I personally do not think we are going to avoid a recession in 2020. We may have a little patch on a short term deal [with China] but I think these issues are not going to be resolved in 2020. I think Brexit is still going to be an issue. And I think interest rates are going to head lower”
He added, “so if you are not in the market, I would be buying. I would be buying gold and I would be buying silver, especially silver south of $17, as an investor.” If you didn’t catch the interview, do yourselves a favor this weekend and watch a great outlook for the year ahead.
Speaking of 2020, next week the Kitco News editorial team will be sitting down and brainstorming our theme for our annual, coveted Outlook series. So be on the lookout in December for its launch, which is always chock full of great information!
On a short-term outlook, reporter Anna Golubova’s Kitco News survey suggests that next week will be an interesting one for gold with Wall Street uniquely split between expectations of higher and neutral gold prices and Main Street still very bullish.
Next week, we also welcome reporter Neils Christensen back! He was in Medellin, Colombia this week checking out a mining conference and, I am most positive, will be sharing some interesting insights!
Enjoy the weekend – quite a chilly one here on the East Coast.
Stay warm and safe!