Gold rebounds, but should traders stay bullish? Peter Hug talks strategy
Gold has rebounded on Friday, up 0.56% as of 2:00 pm EST, while equities indices are falling. Traders should not assume, however, that gold is decoupling from risk assets based on one trading session, said Peter Hug, global trading director of Kitco Metals.
Hug advises traders to stay flat going into the November 3 election, while investors should not be liquidating their positions now and focus on the long-term fundamentals.
The Kitco weekly Gold Survey showed a bias towards bullishness from experts, with 69% of the “Wall Street” side voting in favor of bullish action next week.
“Main Street” voters, or retail investors, had a more mixed outlook: 52% voted bullish, while 33% was bearish, and 15% was neutral. “I agree with Main Street. Main Street is right in the middle, they’re uncertain,” Hug said.