Why Hug Would Stay Long Gold; Comments on Paulson’s Gold Sales

As gold steadies Wednesday following its rally to a 12-month high last week, Kitco’s trading director Peter Hug says he remains optimistic. 'Overall, I think the fundamentals still remain for the market to move higher in the short term,’ he told Kitco News. However, it might be an uphill battle for gold traders. ‘This is not going to be a linear move...it’s going to be a choppy transition,’ he says, adding that the metal has seen its floor. 'As a trader, you’re going to be whipsawed so you need to trade technical levels.’ April Comex gold futures settled relatively unchanged at $1,211.40 an ounce Wednesday as oil prices and equity markets stabilized. Hug also commented on the latest regulatory fillings of billionaire hedge fund manager John Paulson, which showed that he liquidated a 37% stake in the world’s biggest gold-backed exchange-traded fund — SPDR GLD — last quarter. Does this mean the gold bull has turned bearish? Hug says this isn’t the case. 'My guess is that a lot of investors in his funds threw in the towel and liquidated [gold positions], and he had cash calls,’ he says. ‘I highly doubt he’s turned bearish. I think it was just a set of circumstances.’ Kitco News, February 17, 2016. (show less)

As gold steadies Wednesday following its rally to a 12-month high last week, Kitco’s trading director Peter Hug says he remains optimistic. 'Overall, I think the fundamentals still remain for the market to move higher in the short term,’ he told Kitco News. However, it might be an uphill battle for gold traders. ‘This is not going to be a linear move...it’s going to be a choppy transition,’ he says, adding that the metal has seen its floor. 'As a trader, you’re ... (read more)

For Pete's Sake!

For Pete's Sake!
From the latest market-making swings to the forward-looking important events that could impact the markets, For Pete's Sake with Peter Hug breaks down the news. He reviews the latest information coming out of North America, Europe and Asia to help you decide how to play the week. Tune in every week to get his key price ranges for gold and find out why he hates to talk about the Fed.

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