Gold Prices Shuttle Higher as Banks Talk of Near-Zero Rates (Video)
Gold Prices Shuttle Higher as Banks Talk of Near-Zero Rates Video by KitCo News
Zero interest rates may return globally as all eyes are on the European economy, said Frank Holmes, CEO of U.S. Global Investors.
“Europe is such a basket case of taxation and regulation that they can’t get their economy going so they’ve gone to zero interest rates, in fact, Denmark is paying you to take out a mortgage,” Holmes told Kitco News.
Gold prices should respond positively, with firms like Goldman Sachs even underestimating their bullish stance of $1,575 an ounce in three months on the yellow metal, he said.
“They’re always going to be understated, and clearly that means that it could easily go another $150,” Holmes said.