(Kitco News) – Rising returns and a stronger dollar from earlier this week put gold under pressure, but long-term macroeconomic principles have not changed for the metal’s strong outlook, said Peter Hug, Kitco Metals’ global trade director , said. we are still in the early turn of a bull cycle.
‘I think gold reflected the dollar, and the dollar strengthened at ten years earlier this week [yield] bultend. Last Friday, when we spoke, the 10-year traded around 1.12%, 1.14%, it is now 1.32%. “The yields for the ten years have therefore risen this week, and this has moved some assets into the dollar,” Hug said.
Whether gold has performed ‘well’ over the past few months really depends on why you would buy the asset in the first place, Hug said.
‘If you buy precious metals as a position in your portfolio, and you have a specific reason, such as to protect the balance of your portfolio, you do not look at this thing every day, you just keep metals as an award as a percentage of your portfolio. If you’re a dealer, it’s a very different ball game. Right now, I can tell you that my sentiment looks clumsy next week; i like the fact that gold has regained its 200-day moving average from a technical perspective. I would rather keep this market long than be short, ‘Hug said.
Hug’s comments come when gold saw a slight bounce on Friday and last traded at $ 1,779.50 from 2.30pm EST as the dollar index weakened during the session.
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