Peter Hug: every gold, silver pullback a buying opportunity
(Kitco News) - Peter Hug, global trading director of Kitco Metals, remains constructive on gold and silver long-term, and should the economy improve next year, silver could trade in the $40 range.
“On my macro perspective that gold is going to do extremely well in 2021, I think silver at $24 will look cheap when you look back at it. Is it possible that we’ll see silver drop to $20, $22, in that range on a pullback? Absolutely, in that context I would buy silver, on the caveat that I’m bullish gold and I think gold will perform with gold and the if the economy starts to grow, silver will outperform gold and surprise to the upside,” Hug said.
Equities markets are up, with the S&P 500 up 1%, the Dow Jones up 1.14%, and the NASDAQ up 0.47% as of 2:00 pm EST.
Spot gold is up 0.46%, with silver climbing 1.4%.
The U.S. recorded 153,000 new COVID infections on Thursday, a new daily record. California is now the second state after Texas to register 1 million cases.
Hug said that government response has been inadequate.
“What concerns me here is that there’s nobody running the country. There’s no response here. You’ve got President Trump who’s gone AWOL, he’s just not reacting to any of this COVID news, and you have Biden talking about a new approach, but his approach won’t be effective until January 21, so you really have nobody running this ship,” he said.