The Two Biggest Drivers of Gold Explained

In a special Valentine’s Day episode, Frank Holmes spoke with Kitco News’ Daniela Cambone about gold jewelry demand and two big drivers of the yellow metal: the Fear Trade and the Love Trade. Frank explains that the Fear Trade is the fear of rising interest rates, while the Love Trade is the seasonal pattern of gift-giving for holidays, largely in China and India. Because of strong gold buying leading up to Lunar New Year in China, the gold price historically has dipped after the holiday in February. However, Frank believes gold will see a rebound and continue to rally as it did at the start of 2019.

For the full story, watch the interview below!

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Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of 12/31/2018: Men? Inc.