Kitco News talks with Peter Hug about gold prices amidst the issues in Washington. On Wednesday, the US government reached a deal to extend the debt ceiling for another 3 months to prevent default. “I think it was an asinine deal,” Hug says despite gold’s break above $1,300 on Thursday. According to Hug, the debt ceiling debate matched with European restructuring issues and slowdown in China made people view the US dollar as a safe haven trade. Now that the deal has been made it persuaded people to sell the dollar overnight which explains the move in precious metals, he adds. With regards to the Federal Reserve, Hug says the Fed will keep its foot on the accelerator. “If anything, I would suggest that the surprise would be that the Fed may need to increase their bond-buying especially if there’s another issue at the end of the year.” Watch now to hear Hug’s key support and resistance levels for gold.Help us spread the ANTIDOTE to corporate propaganda.
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