Gold’s Safe-Haven Rally 'Not Sustainable’ Says CEO
After rallying last week, gold prices have settled slightly lower this Monday morning as the U.S. dollar posted gains, but one CEO says he is not too phased by it. “It’s the normal DNA of gold to go plus or minus 20%,” U.S. Global Investor’s chief Frank Holmes told Kitco News. "Saying it can fall below $1000 is nothing really special. It can also jump $200,” he adds. February comex gold futures managed to break above the key $1,100 an ounce level last week and managed to settle a little below there Monday afternoon. However, with regards to the safe-haven bid gold got last week, Holmes says it may not last. The ongoing geopolitical events from North Korea and the Middle East, as well as economic woes in China, have triggered gold to rise, “but it’s not sustainable,” he said. According to Holmes, gold’s biggest threat this year will be lower physical demand from China and the Middle East, due to weaker oil prices as well as economic weakness in the regions. Holmes also commented on palladium prices, which have managed to start off the year on a weaker tone, falling roughly 12%. "I don’t think it is a buy now because we have to get China PMI to turn positive,” he said, adding that as global economies continue to struggle so will industrial metals like palladium. Kitco News, January 11, 2016. (show less)
After rallying last week, gold prices have settled slightly lower this Monday morning as the U.S. dollar posted gains, but one CEO says he is not too phased by it. “It’s the normal DNA of gold to go plus or minus 20%,” U.S. Global Investor’s chief Frank Holmes told Kitco News. "Saying it can fall below $1000 is nothing really special. It can also jump $200,” he adds. February comex gold futures managed to break above the key $1,100 an ounce level last week and ... (read more)
Gold Game Film
Gold Game Film features the founder of US Global Investors, Frank Holmes as he highlights play-by-play action in the gold market. Melding sports and precious metals, Holmes comments on gold’s touchdown pass of the week. Holmes also reflects on the opportunities and threats he sees for the gold market. Tune in every week to hear from our Monday Morning Quarterback, Frank Holmes.Disclaimer: The content on this website, including, without limitation, news, videos, interviews and commentaries, is provided by Kitco Metals Inc. ("Kitco") for informational purposes only and is not intended as any form of advice, whether legal, accounting, investment, financial or tax advice. Therefore, it cannot be relied upon as such. Should you require such advice, contact a licensed professional. The content provided herein is provided on an "as is" basis without any warranty of any kind, whether express or implied and your use of the information provided in said content is entirely at your own risk. In no event will Kitco be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content on this website.
