| A number of gold market analysts have argued that the central factor influencing the price of gold is US interest rates. Some analysts go so far as to say that the inverted correlation is so strong that the gold price can be used as a predictor of interest rates, particularly after adjusting for inflation.
What has now almost become a rule of thumb is that rising real interest rates raises the opportunity costs of holding gold because the metal provides no yield and therefore the price should decline. Higher rates also boost the value of the dollar which usually move in the opposite direction of the gold price...............................................Full Article: Source
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