Inflation May Be Gold’s Last Hope – Peter Hug

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After a week-long hiatus, Peter Hug is back from vacation and says he is not surprised to see gold at its current levels. He tells Kitco News’ Daniela Cambone that he saw this downside pressure start last Thursday as the ECB announced both a rate cut and a QE program in the region. “That just took the edge off the currency market and created a significant flow of funds into the U.S. dollar.” Hug adds that strength in the dollar is what mainly pushed gold prices lower. He says there is a perception in the marketplace that U.S. rates will start rising soon and that the economy is doing much better than Europe. “Both of those statements, I think, are accurate but I still think they are premature.” Hug adds that the liquidity introduced into the markets by central banks through QE will eventually translate into inflation and when this happens, there will be ‘fireworks’ in the metals. Tune in now to look at some key ranges he is eyeing as well as to get his latest thoughts on silver. Kitco News, September 11, 2014.

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