Gold Heading To $1,400 This Year: US Global’s CEO – Kitco News

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Kitco News speaks with US Global Investors’ CEO Frank Holmes about gold’s price movements last week and where he expects the yellow metal is headed. “Now with gold going above the 200-day, there’s a sentiment of relief and it is positive,” he says. However, Holmes says that this does not mean investors are ‘runaway bullish’ on gold just yet. Holmes is optimistic about gold’s direction, stating that one of the major headwinds for the metal last year will probably soften in 2014. “One of the big headwinds last year in government policies was CPI numbers fell and interest rates for government bonds went up…that was a big headwind for gold,” he says. “I think you’ll see that change this year; you’re going to see CPI numbers start to rise and lots of capacity in the economy means rates are not going to rise; so, we’ll probably see a negative real rate of return which would take gold up to around $1,400 an ounce.” Tune in now to hear more from Frank Holmes and to hear which mining stocks he is eyeing. Kitco News, February 18, 2014.

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