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Will Gold Have a Rocky Summer?

Daniela Cambone of Kitco News welcomes Frank Holmes back to the program, with gold trading near eight-week lows on the day. Daniela wants to know if gold is setting itself up for a rocky summer or if Frank sees a light at the end of the tunnel for the yellow metal. Frank says that looking back over 30 years of data, the price action we are seeing currently matches with the metal’s historical seasonal pattern. Right now, he explains, gold is approaching its cyclical low which typically occurs near the Ramadan holiday.

Frank reiterates that it is not unusual for gold to fluctuate up or down 20 percent over any 12-month rolling period. But when gold is down like this, he suggests taking opportunity where you can. For the full discussion, watch the replay below!

 

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The COMEX is a commodity exchange in New York City formed by the merger of four past exchanges. The exchange trades futures in sugar, coffee, petroleum, metals and financial instruments.

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.