After Gold's Recent Correction, CEO for U.S. Global Investors Says Metal Is Coming Back Toward Its Mean

KITCO NEWS - After gold's (GLD) - Get Report recent correction, Frank Holmes, chief executive officer for U.S. Global Investors, says that the yellow metal is coming back toward its mean. 'Seventy percent of the time, an asset class can move up or down a specific amount over various time periods,' Holmes said.  He added that it is a non-event for gold to go up or down about 20 percent in a year. Gold ended slightly lower Thursday after the European Central Bank monetary policy meeting concluded with no change in interest rates. The lack of fresh news failed to significantly move the precious metals markets. August Comex gold (GDX) - Get Report settled the day down $1.90 at $1,212.60 an ounce. Gold was also not moving much ahead of the much anticipated Friday U.S. jobs report for May -- arguably the most important piece of economic data of the month, Holmes said. The key non-farm payrolls number is forecast to come in at up 160,000.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.