KITCO NEWS — As the gold market pops higher ahead of the big Fed week, Kitco’s Peter Hug says he expects more volatility ahead. ‘The gold market generally has a weaker tone in anticipation of higher US rates,’ he told Kitco News Friday. However, in late Friday morning trading, February comex gold futures rallied to a high of $1,078.60 an ounce. ‘This indicates, to me, a market that is extremely nervous,’ Hug said. According to the global trading director, he would expect gold to trade between $1,057-1,092 until the Federal Open Market Committee (FOMC) meeting concludes on December 16. ‘If [Janet Yellen] raises rates, I think the first knee jerk reaction will be down [for gold],’ he said, although he expects this down move to be ‘temporary.’ ‘I would probably buy into the drop.’
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