Nov 22, 2016
Guest(s): Frank Holmes
Could inflation be gold's last saving grace? The Labor Department's most recent data showed that CPI recorded its biggest increase in 6 months in October. Frank Holmes, chief executive officer for U.S. Global Investors, comments on the rise in inflation and what it could mean for gold prices. CPI should be a main focus for the gold market, especially given the inverse relationship between the metal's price and rising consumer prices, Holmes explains in this edition of Kitco's Gold Report. The most recent core CPI increased 0.1 percent. On an annual basis, the index which excludes food and energy jumped 2.1 percent, while the overall CPI rose 1.6 percent, the largest increase since October 2014. On Tuesday, gold prices ended the U.S. day session modestly higher on some short covering and bargain hunting following recent losses that saw prices hit a nine-month low last week. However, gains in the safe-haven metal were limited today by continued investor optimism, evidenced by major U.S. stock indexes all scoring record highs. December Comex gold settled the day at $1,211.20 an ounce, up 0.12% on the day.
Could Inflation Be Gold's Salvation? This CEO Thinks So
Nov 22, 2016