What the price of gold needs to get out of its range – Peter Hug

(Kitco News) – Rising yields and a stronger dollar earlier this week put pressure on gold, but long-term macroeconomic fundamentals have not shifted to a bullish metal outlook, said Peter Hug, director of global trade at Kitco Metals , who added that we are still at the beginning of a bull cycle.

“I think gold has mirrored the dollar, and the dollar has been strengthening earlier this week over the 10-year period [yield] arising. Last Friday, when we talked, the 10-year index was trading around 1.12%, 1.14%, now at 1.32%. So 10-year earnings have been going up this week and that has shifted some assets to the dollar, ”said Hug.

Whether gold has “performed well” in recent months or not depends on the reason for buying the asset, Hug said.

“If you’re buying precious metals as a position in your portfolio and have a specific reason, like wanting to protect yourself against your portfolio balance, then you don’t look at it every day, you’re just holding metals as an allocation, like a percentage of your portfolio. If you are a trader, it is a totally different game. At this point, I can say that my feeling seems optimistic next week, I like the fact that gold has recovered its 200-day moving average from a technical perspective. I would prefer to be bought in this market instead of being sold in the market, ”said Hug.

Hug’s comment came with gold rising slightly on Friday, last trading at $ 1,779.50 starting at 2:30 pm EST, with the dollar index weakening in the session.