Gold Bull Market Far From Over Despite Sideways Trading
Frank E. Holmes, CEO and CIO of U.S. Global Investors, believes the gold bull market is far from over despite months of sideways trading. He argues that powerful global trends continue to support higher gold prices.
According to Holmes, about 60% of global gold demand comes from people purchasing gold as portable family wealth, particularly in Asia and the Middle East. This 'love trade' is driven by rising GDP per capita across countries such as China and India, which has increased gold ownership over the past two decades.
Holmes also emphasized that global monetary shifts continue to favor gold, citing more than $350 trillion in global debt and ongoing adherence to Modern Monetary Theory (MMT)-style fiscal policies. He 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.