Gold may be overdue for a corrective bounce, but investors should not expect much upward momentum soon, said Peter Hug, global trading director of Kitco Metals.
“I’m not bearish, bearish, I think we can get a bounce off this $1,250 level, we also have the June quarter end coming up, so expect some volatility tomorrow and Friday,” Hug told Kitco News.
Hug noted that from a technical level, gold should hold the $1,251 an ounce level.
“If we lose that level then from a technical perspective I think we have further to go down. On the upside you need a breakout about $1,267 [an ounce] to confirm upside momentum,” he said.