Analyst: The key factor for gold is oil movement - Video

Gold could be a market mover this week, or it might continue to trade sideways. Analyst Frank Holmes is interviewed by Kitco News' Daniela Cambone for his view on what to expect from gold this week.

September has been historically a strong month for gold. But could this change this year given all the upcoming events?

Holmes explains that historically, September has always been great for gold, but last year it was not, because the oil market rolled over. Thus, the significant factor will be whether oil will be stable. It might be a love trade for gold this month, given also the demand from Asia.

Central bank reserves of gold are declining, according to the recent research. How can that affect gold prices?

Holmes responds that it's not about gold reserves, but it's foreign paper reserves which is peaking, and gold is a substitute of those. So, central bankers all over the world recognize the currency wars taking place…and the best thing is to own real assets.