For Pete’s Sake: Some Juice Around the Numbers

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Peter Hug is on Kitco News to talk about the gold price following the lower employment numbers that came out of the US on Friday. The US unemployment rate fell from 7% to 6.7% in December, reporting only 74,000 jobs last month. “If you look at the data that has come out over the past 10 days, this number certainly surprised the market,” Hug says. “The traders in the metals were predominantly short this market in anticipation of a stronger employment number and then they scrambled…that’s why you’re seeing a pop in the metals since the release of the numbers.” Hug says that despite a higher gold price, the market is still in neutral territory. “There has been no break on the upside yet. If $1,255 were taken out coming into next week, I’d have to revisit my assumptions and then maybe take on a more bullish stance.” Looking at Europe, Hug says that we may see more capital flows out of the euro and into the dollar as a result of the ECB maintaining its low interest rates. “[This] could be a significant headwind for the metals at least in the first quarter or half of this year.” Tune in now to hear what trading ranges Hug is looking at. Kitco News, January 10, 2014.

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