Gold Market Feels Like August - Expert

KITCO NEWS - Precious metals continue to wallow around, looking for any catalyst to create momentum, says Kitco's global trading director Peter Hug. 'India's festival season should increase demand but will not be enough on its own to propel the market higher. The Fed continues to jaw-bone about higher rates, but it is highly likely that a 25 basis-point increase in December -- should it materialize -- is already factored into the market,' Hug said on Friday. Gold is seeing its first positive weekly close in three weeks as many analysts suspect that the correction --which started with a 5% drop at the start of the month -- has run its course. December gold futures settled Friday at $1,267.70 an ounce, closing above its 200-day moving average. 'The EU held policy unchanged, which created some euro selling against the dollar. The market is trading more like August, with physical demand in North America anemic, but it feels like the calm before the storm,' Hug said.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.