The Summer is Hot, But is Gold Still Cool?

Author: USGI
Date Posted: July 15, 2015 Read time: 2 min

Despite the summer “heat” coming from the situation in Greece and in the Chinese stock market, Frank Holmes tells Daniela Cambone of Kitco News that gold is still “cool” – both in price, and as an investment to hold. Frank says that gold’s muted reaction this week is directly related to the short-term noise from Greek concerns, but the macro data point that continues to drive markets and commodities is the global purchasing managers’ index (PMI).

Despite the summer “heat” coming from the situation in Greece and in the Chinese stock market, Frank Holmes tells Daniela Cambone of Kitco News that gold is still “cool” – both in price, and as an investment to hold. Frank says that gold’s muted reaction this week is directly related to the short-term noise from Greek concerns, but the macro data point that continues to drive markets and commodities is the global purchasing managers’ index (PMI).

As Frank details in his latest blog post, the global PMI continues to trend downward, along with the 800-pound gold gorilla, China, whose PMI is treading water to stay above the elusive 50 mark. Watch the replay below to see what else is driving the yellow metal.

 

 

Past performance does not guarantee future results. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more of U.S. Global Investors Funds as of 06/30/2015: Citigroup Inc, JP Morgan Chase & Co.