How Gold Prices Are Correlated to Interest Rates

The relationship between gold prices and interest rates is complex and multifaceted. Generally speaking, the price of gold tends to rise when interest rates are low, and fall when interest rates are high. This is because low interest rates reduce the opportunity cost of holding gold, which does not pay interest or dividends, while high interest rates increase the opportunity cost of holding gold. In addition to this general pattern, there are a number of other factors that can influence the relationship between gold prices and interest […]
Read more