Gold prices hit a three-and a half month high this Wednesday amid a sharp sell-off in world government bond markets. Peter Hug, Global Trading Director of Kitco Metals, has been constructive on gold over the ,300 level, but wants to see the yellow metal move higher before he becomes bullish on the momentum. “I’d like to see a close above ,322 on gold and .22 on silver to create more momentum to the upside,” Hug told Kitco News, “It’s failed at both those levels for both metals three times, so until [the metals] clear that level, I’m still neutral at this level.”Hug said that the main catalyst behind gold’s rally Wednesday was news that China may be backing away from U.S. treasury bond buying. “It was enough of a story to scare the market,” Hug added. “The fact that gold is sitting at ,315 [an ounce] indicates to me that there is an underlying worry to this market and big money has got some of that allocation into gold,” Hug said.
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