Saying goodbye to Peter Hug
(Kitco News) - Unfortunately, it has not been a good week for the team at Kitco. We had to say goodbye to one member, who has played an important role in the development and evolution of the company over the last decade.
This week, we are mourning the loss of Peter Hug, Kitco's global trading director, who passed away Monday from cancer. I always enjoyed talking to Hug and getting his opinions on markets and price action. He was a wealth of knowledge and experience. And I did my best to learn as much as I could from him.
While I am sad that I won't be able to talk to Peter about gold and silver anymore, it has been incredible to see the outpouring of support we have received from viewers who will miss his insights and candor. One of the things that I believe is that it is not so much about what a person has done in life as it is more about the lives around them that they have touched.
From the messages that we have received, Hug influenced a lot of lives. What is interesting though, is that while many people have thanked Hug for the information he has provided over the years, they also thanked him for his honesty and integrity.
One of the reasons why I always enjoyed talking with Hug is because he was never afraid to call the market the way he saw it. If he thought prices were going lower, he would be bearish.
Hug's passing has left a big hole in the gold market, and he will be missed, especially as gold investors face more volatility and uncertainty.
The gold market spent most of this past week within striking distance of $1,800, but the precious metal just couldn't pass the finish line. The market hit a brick wall Friday after a deluge of positive economic data. IHS Markit said its flash estimates showed record levels of optimism in both the service and manufacturing sectors. That report was followed by U.S. Commerce Department, which said March's new home sales rose to their highest level since 2006.
The U.S. economy is starting to build some significant steam, and that will be a headwind for gold. However, many analysts have noted that all this growth and momentum is going to lead to higher inflation, which remains an important factor for higher gold prices.
Some analysts are saying that inflation is already here. "We are already seeing inflation. And the CPI might not be the best benchmark for looking at inflation these days. If you look around the world, you see real estate prices skyrocket. You see building supply costs rise, and service prices increase," Jon Deane, ex-JP Morgan managing director and now CEO of Trovio, told Kitco News' Anna Golubova in an interview this week.
While a lot of analysts are neutral on gold in the near term as $1,800 could prove to be a strong resistance point, they say that the precious metal remains an important inflation hedge in the long term.
That is it for this week.