Kitco News — A passive Fed, lower oil and continued flux in the global equity markets continue to help support the price of gold says Kitco Metals’ Global Trading Director, Peter Hug. ‘The target is in the $1,122 area, where a break will create upside momentum,’ he explains to Kitco News. ‘I think gold moves either way. If you have oil and equity markets collapsing — gold picks up a safe haven bid here. If you don’t have a collapse you can make the case that the economy is on the mend and with higher oil, you can then factor in inflation creeping back in the picture which is also supportive for gold,’ explains Hug. He adds that having deflationary and inflationary scenarios being price positive for gold is very ‘unusual,’ adding that, ‘I think gold will catch that bid.’ Gold prices ended the U.S. day session higher and scored a nearly three-month high Tuesday. February Comex gold was last up $15.30 at $1,120.60 an ounce
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