Analyst Frank Holmes expects gold to be stuck in the $1,000-$1,350 range - Video

Gold prices rises before release of the minutes from the July Federal Open Market Committee meeting (trades now near $1,122). Analyst Frank Holmes said he expects gold to be stuck in the $1,000 to $1,350 range for the next six months. What will come out of this week’s Fed minutes?

The gold market is taking cues from the Chinese stock market which was fall down again on Tuesday, when the Shanghai composite index down more than 6.12% on the day. 'However, the Chinese government is now reporting their consumption of gold on a monthly basis, and I think this is very significant,’ he told on Tuesday. In the last Friday it said its holdings rose by nearly 19 tonnes in July. Holmes said it is all part of the People’s Bank of China’a march to become a currency that is sponsored and supported by the International Monetary Fund in their special drawing rights.