Is a 2008-2011 Scenario in the Cards For Gold? Veteran Metal Trader Comments

Kitco News – In the first trading day of February, gold has once again topped the $1,122 chart point. The metal is currently trading near its 3-month high. It has been a good start to the year for gold, with the market up nearly six percent in the past month. ‘You want to express a major upside number for gold but the choppy action makes investors wary,’ says Kitco Metals’ Global Trading Director, Peter Hug. Speaking with Kitco News, Hug adds, ‘A scenario similar to 2008-2011 may yet develop but I cannot in good faith just throw out an absurd upside target. The cross-currents in the market continue to suggest upside momentum for gold, but the move is likely to be jerky.’ Hug explains that it is definitely a technical market for traders but in the current environment a core position for investors is key. ‘Fundamentals line up for a higher gold price. The moon shot may be coming, but if you do a reality check, what will that mean for your other assets: home values, 401 k., and your job. Hold gold as an insurance play and hope you don’t need to cash in the policy.’