Gold Bull Market Far From Over Despite Corrections

Frank Holmes believes that despite months of sideways trading, the gold bull market is far from over. As executive chairman of HIVE Digital Technologies and CEO and Chief Investment Officer (CIO) of U.S. Global Investors, he argues that powerful global trends continue to support higher gold prices.

The 'love trade' is stronger than the 'fear trade', according to Holmes. Western investors tend to focus on fear-driven buying fueled by inflation, wars, monetary expansion, and financial instability. However, 60% of global gold demand comes from people purchasing gold as portable family wealth in Asia and the Middle East.

Holmes also pointed out that China has weakened the U.S. dollar's international dominance through its Belt and Road Initiative and expanding influence among BRICS nations. With approximately 75% of United Nations member countries having financial ties to China, long-term demand for U.S. dollars is decreasing while interest in alternative reserve assets like gold is increasing.