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Published on Aug 1, 2016
KITCO
NEWS - Gold prices ended the U.S. day session modestly higher Monday
and closed at a three-week high. There was decent follow-through buying
from Friday's gains says Peter Hug, global trading director for Kitco
Metals. 'Gold is digesting last week's sprint higher and traded in an
extremely tight range overnight. The GDP data from Friday should
continue to provide underlying support for gold, but Fed speak remains
the obstacle to a clear path higher,' he told Kitco News on Monday.
December Comex gold futures settled the day at $1,359.60 an ounce. 'New
York Fed President William Dudley has voiced concerns over the risks to
further growth and suggests that the Fed may likely wait until December
before any rate hike. Turn the channel and you find Federal Reserve Bank
of Dallas Fed President Robert Kaplan arguing that a September increase
remains on the table. Understanding the need to remain polite, I cannot
put into words my amazement with the Fed's communication prowess,' Hug
said. The veteran trader noted that he remains constructive but needs
the $1,355 gold level to be taken out. 'The downside line of $1,338
becomes support,' he said.
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