A good zinger by Republican candidate Mitt Romney against President Obamain Wednesday’s debate could send gold lower, Jeff Kilburg of Killir Kapital Management said on CNBC’s “Fast Money.”
Gold bull Killburg said he sold half his holdings for three reasons.
“One, obviously you have to book profits,” he said, adding that dovish comments by Chicago Federal Reserve President Charles Evans were the second reason.
“Most importantly, I am seeing the presidential debate tonight, one of three debates before the Nov. 6 election,” he said. “If Mitt Romney can land a single punch, you will see gold go lower.”
Kilburg said that a perceived win by Obama would keep gold on an uninterrupted trajectory.
“If Obama stays in for another four years, you will not see the deficit reduced and the budget reduced, therefore gold will continue,” he said. “But at the end of the day, long-term, gold is going higher.”
Trader disclosure: On Oct. 3, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Najarian is long AAPL; Jon Najarian is long BAC; Jon Najarian is long FB; Jon Najarian is long AMZN; Jon Najarian is long GOOG; Jon Najarian is long BBY; Jon Najarian is long LEN; Jon Najarian is long NFLX; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Brian Kelly is long QQQ; Brian Kelly is long NAT GAS; Brian Kelly is long UNG; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long COPPER; Brian Kelly is long JJC; Stephen Weiss is long AIG; Stephen Weiss is long VZ; Stephen Weiss is long VOD; Stephen Weiss is long T; Stephen Weiss is long QOM; Stephen Weiss is long HK; Stephen Weiss is long UGL; Stephen Weiss is short AAPL PUTS; Stephen Weiss is short VALE; Stephen Weiss is short AKS; Stephen Weiss is short BHP.
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