Gold Bull Market Far From Over, Says Frank Holmes

Frank Holmes, CEO of U.S. Global Investors, argues that the gold bull market is far from over due to persistent central bank buying and ongoing geopolitical uncertainties.

Central banks have been accumulating gold at an unprecedented pace, with over 1,000 tonnes purchased in 2023 alone, according to the World Gold Council.

Holmes emphasizes that this trend is a structural shift, not a cyclical blip, as countries seek to diversify away from the U.S. dollar and hedge against geopolitical risks.

The Federal Reserve's shift toward a more dovish stance has also boosted gold prices, with real interest rates expected to decline and reducing the opportunity cost of holding non-yielding assets like gold.

Ongoing conflicts in Eastern Europe and the Middle East have fueled safe-haven demand for gold, with retail investors returning to gold through ETFs and physical bullion.