KITCO NEWS – Gold prices ended the U.S. day session modestly higher Monday and closed at a three-week high. There was decent follow-through buying from Friday’s gains says Peter Hug, global trading director for Kitco Metals. ‘Gold is digesting last week’s sprint higher and traded in an extremely tight range overnight. The GDP data from Friday should continue to provide underlying support for gold, but Fed speak remains the obstacle to a clear path higher,’ he told Kitco News on Monday. December Comex gold futures settled the day at $1,359.60 an ounce. ‘New York Fed President William Dudley has voiced concerns over the risks to further growth and suggests that the Fed may likely wait until December before any rate hike. Turn the channel and you find Federal Reserve Bank of Dallas Fed President Robert Kaplan arguing that a September increase remains on the table. Understanding the need to remain polite, I cannot put into words my amazement with the Fed’s communication prowess,’ Hug said. The veteran trader noted that he remains constructive but needs the $1,355 gold level to be taken out. ‘The downside line of $1,338 becomes support,’ he said.
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