Silver Prices Benefit From Stronger Oil, What Happens When China Market Re-Opens: Peter Hug

Kitco News -- Gold prices ended a choppy, two-sided trading session modestly higher Wednesday. Prices notched another two-week high as bulls are building upon their recent technical momentum. Peter Hug, Global Trading Director for Kitco Metals says that a key feature in the market place so far this week has been the surge in crude oil prices, which has helped the downbeat silver metal. December Comex silver was last up $0.071 at $16.055 an ounce, while Nymex crude oil hit a five-week high and is close to hitting $50.00 a barrel. 'Silver continues to react to stronger copper and oil prices, but the test here will be when China re-opens. U.S. markets have glided higher as China has been closed. Will the trend continue when the Chinese market re-opens or will the trend reverse if the Shanghai index starts taking it on the chin again?,' he said on Wednesday. On the gold front, Hug said the risk of continued global deflation continues to be the better odds bet, which would create a floor for gold. ‘At a minimum one would expect the silver/gold ratio to re-test the 75-77 range from the current 72 level,’ he explained. December Comex gold was last up $2.40 at $1,148.90 an ounce.