Two Gold Trends to Watch
In an interview with Kitco’s Daniela Cambone on August 8, Frank Holmes talks about the trends affecting gold. The first trend is gold’s seasonal cycle over the past 35 years. Frank explains that gold has historically bottomed in July, with a run starting in August, climbing from there through the month of September and correcting in October. Frank says gold has peaked in February during Chinese New Year.
In addition, the U.S. dollar has had a great run, but for gold investors, the magic number is a positive 2 percent for interest rates. When government treasury bonds pay 2 percent over inflation for a sustained period of time, gold tends to become unattractive as a monetary asset.
Watch Frank’s interview at Kitco now to hear their conversation on gold, along with his comments on several other commodities like silver, platinum and copper.
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The following securities mentioned were held by one or more of U.S. Global Investors Funds as of 06/30/13: Michael Kors