KITCO NEWS – Gold prices ended the U.S. day session solidly lower Monday and Comex futures hit a five-year low of $1,080 an ounce, in Asian trading. Prices did bounce off the lows by the time U.S. trading started, but still traded solidly lower on the day. Kitco’s spot gold was last quoted down $29.00 at $ 1,104.30 an ounce. 'The gold price is bouncing up and down and investors have to make sure they are strapped-on well to enjoy the ride,' said Frank Holmes, CEO of U.S. Global Investors in an interview with Kitco News Monday. Holmes suggested it was a major player dumping gold. 'Recognize this was a 2.7 billion dollar notional value trade that hit the market about 18 months ago – last month the investigation by Comex showed it was a high frequency trade and they spanked people by slapping them on the wrist. You can do this in financial markets as long as the price of commodities falls down,' he explained. Holmes added, 'it is very distressful for investors but a great short term opportunity to reposition your portfolio.' The big downdraft for gold started in Asian trading, gold prices swiftly plummeted to the $1,080.00 level before rebounding to trade back above $1,100.00. Holmes said his focus is now on this week’s China flash manufacturing PMI. 'Hopefully we see it run over 50 - this will turn the commodity trade in a positive note,' Holmes said. When looking at PMIs, a reading of 50 or above indicates manufacturing expansion, while a reading below 50 indicates a slowing economy. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
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