Make Kitco Your Homepage

News Bites

Why gold is still falling, despite stimulus and weak economic data - Peter Hug

David Lin

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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.

By David Lin

For Kitco News

Contact dlin@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.