Gold traders appear confused, says Peter Hug, a veteran gold trader and the global trading director for Kitco Metals. ‘The stronger dollar and the closure of Chinese markets for New Year should have produced more of a pullback from Friday’s strength. Stronger German inflation numbers should have weakened the dollar against the anticipation that the ECB may begin to tighten, but the jargon is that Draghi will continue to leave bond purchases unchanged,’ Hug said on Monday. He added that the world is reacting to President Trump’s travel ban, which is unlikely to create economic issues but the optics continue to suggest an inward-looking policy. There continues to be ‘mixed signals’ in the market as investors try to figure out what President Trump may or may not deliver, Hug suggests. As for gold levels, he said that should gold push through the $1,192 area, a trade to $1,202 is possible. On the downside, $1,185 should provide intra-day support.
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