Oil, Gold and Economic Growth
Date Posted: September 13, 2017
Read time: 1 min
Amanda Drury with CNBC Asia welcomes Frank Holmes to the program to talk oil and gold, starting with why oil prices aren’t getting off the ground much more than $50 per barrel.
Amanda Drury with CNBC Asia welcomes Frank Holmes to the program to talk oil and gold, starting with why oil prices aren’t getting off the ground much more than $50 per barrel. Frank agrees that the current price level is comparable to a tax cut, at least for certain emerging markets. He also explains that China, the U.S. and most of Europe are net importers of oil, so this is “extremely positive and should help maintain global economic growth.”
The two also discuss where gold prices are at the moment, and Amanda asks Frank why he remains bullish on the yellow metal. Franks says it all comes back to negative real interest rates, which share an inverse relationship with the price of gold.
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