from Kitco NEWS
With gold prices down 2.6% this week, U.S. Global Investors CEO Frank Holmes tells Kitco News he is not concerned. ‘Gold is just going through its normal seasonal pattern,’ he told Daniela Cambone Thursday. Although he highlighted interest rates as an important factor for gold, Holmes is really focused on inflation. ’The most welcome news recently was that the core consumer price index (CPI) rose 2.3% year-over-year in February, representing the fourth straight month of inflation and the highest rate since October 2008,’ he said. ‘As I’ve pointed out many times before, gold has tended to respond well when inflationary pressure pushes real interest rates below zero.’ April Comex gold futures settled Thursday’s session at $1,221.60 an ounce while May silver settled almost 4% lower on the week at $15.199 an ounce.