Economic Recovery 'Sufficiently' Taking Root; What It Means For Gold?

from Kitco NEWS

lass=”” >The U.S. economic recovery seems to be moving along with U.S. Fed officials now leaning more towards hiking rates this year. One chief investment strategist, Scotty George of Alexander Capital, says the recovery is sufficiently taking root and hikes are to be expected – however, he does not think a hike will take place before the November election. George said, “[I]s there anything, then, which might derail the market’s forward progress? Of course there is…there always is. That is the nature of economics, cycle-phase investing, and market speculation.” So what does this all mean for safe-haven gold? George suggests that investors hold a portion in the metal. While most experts suggest a 5-7% allocation, he is more conservative, suggesting allocating less than 5%. Gold futures hit a two-month low Wednesday as traders continued to mark time ahead of the key U.S. nonfarm payrolls report due out at the end of the week. Comex December gold last traded down $5.10 at $1,311.40 an ounce. December silver bounced from early weakness to last trade up 3.7 cents at $18.71.

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