Peter Hug is back in the Kitco News studios to give his thoughts on the ECB rate announcement on Thursday and U.S. October jobs numbers. Hug says the market expects the EU to drop rates by at least 25 basis points. “If the EU holds steady, I think money will flow back into the Euro, there will be a relief rally for the Euro and that should be positive for the metals in the short-term,” he adds. With regards to inflation, Hug says he does not see it as an eminent issue in Europe and less so in North America. “I don’t think inflation is a risk for at least a couple of more years.” Hug also looks at U.S. jobs numbers and says there will be a reaction to the numbers but he doesn’t expect the Fed to do anything until year end. “The ECB announcement is the primary news driver that is expected tomorrow and from that we’ll get short term direction in the metals,” Hug says. “Until we get some new trading levels [in gold], I think investor interest at these levels is pretty tame.”
