Gold Prices Shuttle Higher as Banks Talk of Near-Zero Rates

Zero interest rates may return globally as all eyes are on the European economy, said Frank Holmes, CEO of U.S. Global Investors.

“Europe is such a basket case of taxation and regulation that they can’t get their economy going so they’ve gone to zero interest rates, in fact, Denmark is paying you to take out a mortgage,” Holmes told Kitco News.

Gold prices should respond positively, with firms like Goldman Sachs even underestimating their bullish stance of $1,575 an ounce in three months on the yellow metal, he said.

“They’re always going to be understated, and clearly that means that it could easily go another $150,” Holmes said.

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