Several macroeconomic factors could come into play and push gold upwards, said Peter Hug, Global Trading Director of Kitco Metals.
“When you look at the overall macro picture here, you’ve got U.S. yields at highs that we haven’t seen for almost 10 years, and you still have gold north of $1,200. I’m suspecting that the Fed is probably going to take its foot off the gas soon and I’d be surprised even if they moved in December,” Hug told Kitco News, adding that a rate hike in December may be the last one from the Fed.
Hug added that there are macro risks lingering with the Italian budget deficit, Brexit, and North Korea, all of which give investors reason to remain constructive on gold.
“I think it’s conceivable that you could have a stronger dollar and a stronger gold price here if the contagion risks in the EU start to exasperate,” he said.