Ignore Oil Below $40 a Barrel, ‘Healthy’ Inflation Returns – CEO

Healthy inflation has returned says Frank Holmes, chief executive officer of U.S. Global Investors. Holmes points to the core PCE price index, which increased at a pace of 1.9 percent annualized in the first half of the year. 'Oil is moving from an inflation headwind to a tailwind,' Holmes said on Kitco's Gold Report. However, crude oil made headlines Monday after falling to a four-month low below $40 a barrel driven by the global gasoline glut and continued worries of oversupply out of the U.S. and OPEC nations. Meanwhile, gold posted gains Monday with December Comex gold futures trading at a three-week high, settling the day at $1,359.60 an ounce.

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