It’s a Crowded Trade for Gold Right Now

Author: USGI
Date Posted: October 8, 2014 Read time: 1 min

On this week’s episode of Gold Game Film with Kitco News, host Daniela Cambone asks Frank Holmes his thoughts on the gold market after investors saw the price drop to its lowest level in over a year. Frank acknowledges the tough patch we’ve seen for the precious metal, noting the strong dollar’s effect on the price and calling this movement a currency trade.

But Frank also calls the recent moves in gold a crowded trade, highlighting that many investors are short. With record short positions being established right now, Frank thinks this is actually positive, because it’s a sign we could be preparing for a great, big, spectacular rally. Watch the replay to hear about the other threats and opportunities for the metal, as well as Frank’s touchdown pass for this week.

 

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