Gold Acting More Like a Raw Commodity Than a Safe-Haven: Frank Holmes

Kitco News – Gold steadied not far above its 5-1/2-year low on Monday, struggling to scale higher at the start of August after suffering its deepest loss in two years last month. Frank Holmes, CEO of U.S. Global Investors noted that the metal was acting more like a raw commodity than a safe-haven asset. 'Given the news that Greece’s stock market reopened Monday for the first time in five weeks, and was down 17%, gold was reacting relatively well,' he said in an interview with Kitco News. Holmes added that the key outside markets are also in a bearish posture for gold and silver, as the U.S. dollar index is higher and crude oil prices are lower. Kitco’s spot gold was last trading down $5.40 at $1089.80 an ounce. Crude oil prices slid to a four-month low on the China’s latest purchasing managers’ index (PMI) news and on reports U.S. oil rigs in operation are on the rise again. Copper and aluminum prices also fell to six-year lows Monday.