Investors Turning Towards Depressed Commodity Sector -- Global Trading Director
(Kitco News) - It is all about perception; economic issues are not as bad as thought and investors feel that economies may not be crashing, according to one Global Trading Director. The result, explained Peter Hug, Kitco Metals’ head of global trading, is that capital flows slow down into the gold trade and move into the depressed commodity sector. ‘Copper is up, silver is moving higher, PGM’s find bids with palladium approaching $600 and platinum is crossing $1,000,’ he said in an interview with Kitco News. ‘You have gold relatively flat but all the other metals, in percentage terms, are showing nice gains,’ he added. Hug explained, ‘if the Shanghai drops [Tuesday] tonight, reverse the above scenario. Metals and equity markets will continue to roil until we get the Fed’s September meeting behind us,’ he said. Hug said he is expecting $1,117 to hold for gold, until the U.S. Fed meeting is out of the way. December Comex gold was last down $0.20 at $1,121.30 an ounce. December Comex silver was last up $0.186 at $14.735 an ounce.
