Gold Floor May Be All the Way Down at 1,200: Smith

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Oct. 11 (Bloomberg) -- Bloomberg's Alix Steel and Sterling Smith, futures specialist at Citigroup Global Markets, put futures in focus with a look at the gold market in "On The Markets." They speak on Bloomberg Television's "In The Loop."

Was halted for december futures.

There was so much selling.

Where is the floor?

The floor on gold maybe all the way to trawl hundred.

When gold has a problem, selling becomes very acute and the market rates sharply.

Cold does not perform well during crises.

Gold usually performs well after crisis when there is a threat of inflation what we have going on in washington is not inflation.

It can lead to economic showdowns in a recession.

That takes the inflation component out of gold.

That is difficult to handle.

There is a technical aspect.

If you take a look at the nomination of janet yellen and how the debt ceiling has moved in tandem with gold over the last few decades, gold is not moving like it used to.

How many longs are there in the market to shake out for a balance?

The appointment of janet yellen should be beneficial to gold depending on how the economy plays out and how she handles the quantitative easing to tuition.

That near-term problem with gold is that it is trading -- handles the quantitative easing situation.

People could head to the sidelines quickly.

What does that do to silver?

50% of silver is for industrial markets.

Silver has a precious and industrial component to it.

Silver has a lot of volatility issues with it because it is a much thinner market and a much bigger contract.

The exposure will be a lot bigger and silver will be a lot more for trade.

Sterling smith, thank you so much for your outlook.

We are on the markets again in

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change