Why gold is still falling, despite stimulus and weak economic data - Peter Hug
(Kitco News) - Gold’s reaction to bad economic data continues to be weakness; the precious metal is down almost 1% on Friday. Peter Hug, global trading director of Kitco Metals said that it is only a matter of time before the metal reverts course.
“It’s a matter of timing. If you look at the March timeframe when the pandemic first came out, we had closures in the economy and we started to backtrack, I think we are in a similar mode right now,” Hug said. “You had a situation where people were scared and they remain scared.”
Weak inflation, retail, and jobs numbers are putting investors on edge, Hug said, and markets are taking profits from risk assets while stocking up cash, causing the decline in both stocks and gold on Friday.