Fed Chair Jerome Powell's speech at tomorrow's Jackson Hole meeting is likely to hint at more rate hikes, says Todd "Bubba" Horwitz of bubbatrading.com.
"[Powell] is a street guy...I think he's going to do what he thinks is right, and I think what's right is to be more hawkish here and to start to get rates to go higher, otherwise they're going to run into a problem," Horwitz told Kitco News.
Horwitz noted that while turmoil in emerging markets is to be considered, the more important issue is domestic growth, which has been strong and warrants higher interest rates.
"We've got to worry about our own growth here and worry about the rates, and I think the truth of the matter is that rates need to be higher here," he said.
On gold, Horwitz said that a bottom could be near.
"I think [gold] can hold here. I think it should hold, I think you're seeing a lot of fear and panic out there that will dissipate, so I think that we're going to hold these bottoms," he said.
Horwitz added that should gold fall below $1,180 an ounce, investors should "exit and look for a new entry."
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.