Gold could drop $5 to $6 an ounce upon the Fed’s announcement next week, then rebound quickly, said Peter Hug, Director of Global Trading at Kitco Metals.
“I am not in the camp that the Fed is going to be aggressive this year, on a four-rate [hike], increased kind of tempo, I just think there’s too many headwinds out there that’s going to give the Fed pause,” Hug told Kitco News.
Hug noted that during past rate hike cycles, gold has typically fallen into the announcement and then climbed back afterward.
- Source, Kitco News
