KITCO NEWS — Gold’s drop to a four-week low this week on expectations of a potential December rate hike does not concern one chief executive who remains positive on the yellow metal. ‘This is a lot of short-term noise,’ Frank Holmes, CEO of US Global Investors, told Kitco News Thursday. According to Holmes, commodities may be at an inflection point and may provide a ‘great opportunity’ to investors as global PMI numbers have turned positive. ‘Every time this has happened, gold firms up, copper firms up,’ he noted. Another major news item in the gold space Thursday, is Prime Minister Modi’s implementation of the Indian Gold Monetization Scheme in the country. However, Holmes said he doesn’t expect it to do much to the price of the metal. ‘I don’t think it will have a big impact because most Indians are afraid it’s a trap,’ he said. Over the short term, he said Friday’s jobs report should have a positive effect on gold prices but over the longer term, he said it is important to look at PMI data . ‘The fact that China is turning the corner, means it is the time to look for opportunity.’
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