Analyst: Strong dollar is to blame for gold's muted reaction to Greece - Video

Analyst: Strong dollar is to blame for gold's muted reaction to Greece - Video

7 July 2015, 14:54
Anton Voropaev
0
671

The world's oldest currency, gold, said "So what" to Greece's "No". The yellow metal regained some ground on short covering. But what’s holding gold back?

However, analyst Frank Holmes interviewed by Kitco News suggests gold has not lost its safe-haven status, as strong dollar is the one to blame for keeping gold under pressure.

It will also be true to say that the dollar now is widely considered as a safe-haven currency right now, as it is expected to get stronger because of rising interest rates.

“What the U.S. dollar pays on real rates of return relative the euro and other currencies around the world, is still so high,” says Holmes. 

Central banks play an important role for gold too, as they sell the precious metal to provide stability in the currency volatility.

Frank Holmes and host Daniela Cambone also discuss capital markets' delayed reaction to Greek events.


Share it with friends: