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Published on Oct 17, 2016
KITCO
NEWS - Expectations for Fed rate hikes seem to be the biggest factor
weighing on gold and silver prices; but Erik Norland, senior economist
for CME Group, says this is just one short-term driver. Instead, he
turns his attention to another key driving force: mining supply. Norland
says that while the Fed is 'the' short-term driver, it is mining supply
that could have a longer-term effect. Norland also speaks on the
gold-silver ratio, which is currently above historical norms. 'I view
them both as historical currencies, but the relationship between gold
and silver is not stable, it has moved a long way in gold's favor. If
interest rates begin to rise, it would not be favorable for gold and we
could see the ratio decline,' he says.
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