Why a $50 Uptick in Gold Wouldn't Surprise This Trader

KITCO NEWS - Although gold prices remain under pressure, one longtime trader says he wouldn't be surprised to see the metal jump $50 higher. 'The monetary stimulus in this market will be here to stay for at least the next few years and I think that's underlying bullish for the metals,' Kitco's global trading director Peter Hug told Kitco News. 'I think there is potential for accidents to happen [and] within the realm of possibility, I wouldn't be surprised to come in one day and see gold up $50 instead of down $40.' The yellow metal fell under pressure earlier in the week, seeing its biggest one-day drop in nearly three years, last settling down 0.08% at $1,268.60 an ounce on Wednesday. However, Hug doesn't seem too convinced by the selloff. 'Unless I'm living on another planet, I have seen absolutely nothing that has changed.'

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