| The dollar is rallying again and US borrowing costs — as measured by benchmark bond yields — are nudging to the top of their recent range. As we’ve mentioned before, that’s not a great scenario for gold. Because the main quote for the yellow metal is in dollars, the bullion price tends to fall as its cost is adjusted when the buck strengthens.
Gold is also seen by some as a competitor to the greenback, so the idea that the market wants dollars can mean investors see less need to shift out of fiat currency and into bullion. Higher interest rates increase the “opportunity cost” of holding the non-yielding metal...............................................Full Article: Source
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