Gold, Oil and the Currency War
Frank Holmes joins Kathleen Hays and Vonnie Quinn of Bloomberg Radio to discuss the pullback we’ve seen in gold over the last several months, along with lower oil prices and a strong dollar. Frank says that he can attribute the decline in the precious metal to the inverse relationship between gold and the real rate of return on government bonds. When real rates of return are positive as they are now, historically, gold has been sold off.
Frank also attributes gold’s movements to what he calls the currency war taking place around the world. In the U.S., the strong dollar is pushing gold prices lower. In Europe, Japan and other countries around the world, we have seen similar patterns.
Listen to the full interview here to see what Frank has to say about oil prices, as well as the latest gold referendum out of Switzerland.
To listen and learn more from Frank Holmes, subscribe to our Investor Alert podcast, available for free on iTunes.
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The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.
None of U.S. Global Investors Funds held any of the securities mentioned in this interview as of 09/30/2014.
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