The Fed Still Has Hikes On Its Mind? Jobs Number More Relevant Than Ever: Hug

There remains an underlying belief that the Fed may still have an interest- rate hike on the table, especially if Friday’s job number is strong, this according to Peter Hug, global trading director for Kitco Metals. ‘A strong number may create some knee-jerk selling, but weakness should be considered a buying opportunity. The issues in Europe far outweigh the Fed’s desires to normalize interest rates,’ he said. Goldprices are slightly lower on some mild profit taking after hitting a 27-month high Wednesday. Silver prices are also seeing a corrective pullback Thursday, after hitting a two-year high on Tuesday. August Comex gold settle down $5 an ounce at $1,362.10. Meanwhile, September Comex silver settled down $0.365 at $19.838 an ounce. ‘We departed the long side yesterday when gold neared the critical $1,376 area. This price point is a crucial resistance line. In 2014 gold traded down to $1,200 early in the year and bounced back to its 2014 high in March before resuming its downtrend to the eventual bottom of $1,050-ish. The March high was $1,376,’ Hug explained. A break up through this level sets up $1,400 as a given, with $1,425 a probable next stop, the veteran trader added.