With holidays and families preparing for the fall, there are not that many traders, which leads to all sorts of volatility, said Peter Hug, head of Kitco's precious metal division.
Hug spoke to Kitco News on Wednesday when October gold futures traded down $35.40 to $1,935.40.
"During the last week of August, leading up to Labor Day, trading tends to be very, very thin. Lots of people are organizing their kids for school and trying to take advantage of the last week of [unofficial] summer. It doesn't take a lot to move the markets," said Hug.
Peter Hug has been involved in precious metals since 1974. He began gaining first-hand investment industry experience at Deak-Perera. He served as SVP at Guardian Trust Company, which became one of the largest international trading houses for precious metals. He developed the first precious metals certificate program and the first margin trading accounts for metals on the cash market. Peter has acquired extensive experience in the wholesale markets and international asset diversification. A frequent speaker at precious metals conferences and in the financial media, he is one of the handful of experts who have succeeded through multiple bull and bear cycles on the strength and skills honed during the dramatic fluctuations of the 1980s. As the Director of Kitco's Precious Metals Division, Peter develops newer and better investment options for Kitco customers.