Kitco News — As markets await the release of the minutes for the July Federal Open Market Committee (FOMC) meeting, Kitco Metal’s Global Trading Director, Peter Hug said he doesn’t expect the central bank to make a move on rates in September. ‘I’ve been in the camp that the U.S. Fed may not move until 2016,’ he said ahead of the FOMC. ‘I’m sort of begging Yellen to raise the rate in September and get it out of the way. She’s got herself in a corner,’ he noted. Hug explained that the language of the minutes will be crucial. ‘If the Fed begins to bring wording of concern of the serious global issues: such as the equity meltdown in China, the slowing of the world’s second largest economy, the potential financial collapse and debt repudiation of Brazil, the serious recession in Canada, where a collapsing dollar is affecting U.S. exports, a September rate hike is dead.’ Looking at gold, Hug seems optimistic about the metal, stating that he’s ‘surprised’ with the current consolidation levels. ‘Every time gold tries to break down below $1,110 there seems to be buying interest. So I am constructive gold at these levels,’ Hug said. He shares the same sentiment towards silver, although he sees it as a little riskier right now. ‘Silver is still tentatively a bit of a risk here but at a 75:1 ratio — I think silver is a good buy at the 14.80 level.’ Ahead of the FOMC, gold prices hit a fresh four-week high in late-morning dealings. December gold was last up $11.50 an ounce at $1,128.10.
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