Gold, Silver Rally As 10-yr Yields Hit Record Low - Frank Holmes

Market turmoil following the UK's decision to leave the European Union is causing more investors to turn to gold (GLD) - Get Report and treasuries said Frank Holmes, founder of U.S. Global Investors. The yellow metal rallied more in the first half of the year than in any other year since 1974, with prices pushed up 24 percent, he said in an interview with Kitco News. 'In addition, traders are now pricing in greater chances of a rate cut than a rate hike in September, pushing Treasury yields lower and boosting the appeal of gold,' Holmes said in an interview with Kitco News. Gold futures prices closed at a 27-month high close Tuesday, on more safe-haven demand amid risk aversion among traders and investors on this first U.S. trading day of the week. Meantime, silver prices soared to a two-year high of $21.22 overnight, basis September Comex futures, before backing well off that high. August Comex gold was last up $19.40 an ounce at $1,358.40. September Comex silver (SLV) - Get Report was last up $0.422 at $20.015 an ounce.

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