Gold, Silver Hit 3-Week Highs As Speculators Say “More Room To Run”: Frank Holmes

from Kitco NEWS

Gold and silver prices posted solid gains Monday as the U.S. dollar weakened and crude oil rallied.  Both precious metals markets hit nearly three-week highs today and gold speculators think the precious metal has more room to run. “While gold futures have dipped from a 13-month high, hedge funds are the most bullish in fourteen months,” says Frank Holmes, the chief executive officer for San Antonio-based U.S. Global Investors. June Comex gold settled the day 1% higher at $1,258 an ounce while May Comex silver settled at $15.976 an ounce, up nearly 4% on the day. Federal Reserve chair Janet Yellen’s intentions to keep interest rates low for longer is a positive sign for gold, Holmes explained. “Gold popped to a one-week high following Fed minutes that indicated policy makers would remain cautious,” Holmes said in an interview with Kitco News. The U.S. dollar index dropped to an eight-month low Monday as prices continue to trend lower post the dovish rhetoric coming from Fed officials. Meanwhile, the worst performing precious metal for the week was palladium, down over 4.5%. Holmes highlighted a UBS research noting showing that platinum and palladium are having limited attention from investors right now.

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