2024-07-25 11:30:00 ET
Summary
- After adjusting for inflation, when interest rates rise, the price of gold falls.
- We think that new paradigm is like the old one, but is resetting the relative level of the price of gold at a much higher level than it was previously.
- The price of gold is now ratcheting up without any significant change in real interest rates.
Gold is a hedge against inflation. Gold is sensitive to expected long-term real interest rates. Gold is regarded as protective against "bad economic times"....
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For further details see:
The Glitter Of Gold And What Drives Its Price