KITCO NEWS — As the gold market pops higher ahead of the big Fed week, Kitco’s Peter Hug says he expects more volatility ahead. ‘The gold market generally has a weaker tone in anticipation of higher US rates,’ he told Kitco News Friday. However, in late Friday morning trading, February comex gold futures rallied to a high of $1,078.60 an ounce. 'This indicates, to me, a market that is extremely nervous,’ Hug said. According to the global trading director, he would expect gold to trade between $1,057-1,092 until the Federal Open Market Committee (FOMC) meeting concludes on December 16. 'If [Janet Yellen] raises rates, I think the first knee jerk reaction will be down [for gold],’ he said, although he expects this down move to be ‘temporary.’ ‘I would probably buy into the drop.’
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.