CPI Higher Than Expected But It's Premature For Inflation Scare: Peter Hug | Kitco News



US Retail Sales, CPI and Fed Beige Book all out this week and Kitco News has Peter Hug to comment on how they can affect the gold market on this edition of “For Pete’s Sake.” Hug says that the CPI numbers released on Tuesday were higher than expected and this reinforces the Fed’s tapering program. However, he warns that once inflation kicks in, it would get ‘nasty’ very quickly. “I think we’re premature on an inflation scare,” he adds. Focusing on the Beige Book, Hug says that he expects the Fed to stay on course with tapering and expects bond buying to end by late summer, unless a major meltdown in the equities markets occurs before then. “A serious drop in the equity market may be the catalyst that, in my opinion, could change the Fed’s mind.” Turning to Europe, Hug says the Ukraine-Russia crisis is really what is supporting the gold market at this time. “There are a number of things that could still happen and within [that] context that creates some support for gold as a safe-haven…” Tune in now to hear more from Peter Hug and to get his ranges for gold this week. Kitco News, April 15, 2014.

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