Featured Posts

How Real Interest Rates Affect Gold Prices

Real interest rates are one of the most important concepts for understanding gold. They help answer a simple question: after allowing for inflation, what return can an investor earn from holding a relatively safe interest-bearing asset?   Because gold does not pay a coupon or interest, changes in real yields can alter the opportunity cost […]

Read More

How Inflation Affects Gold Prices

Gold is often described as an inflation hedge, but the relationship between inflation and gold prices is more complicated than that phrase suggests. Rising consumer prices can support demand for gold, especially when people are worried about the purchasing power of money. Yet high inflation can also lead to higher interest rates and higher bond […]

Read More

How Interest Rates Affect Gold Prices

Interest rates influence gold through bond yields, the US dollar, and the opportunity cost of holding a non-yielding asset. But higher rates do not automatically mean lower gold prices, and lower rates do not guarantee a rally.   —   Interest rates are one of the most closely watched drivers of gold prices.   The […]

Read More

How the US Dollar Affects Gold Prices

Gold trades globally, but international markets commonly quote it in US dollars. That makes the dollar one of the most closely watched influences on bullion, although the relationship is not as simple as ‘dollar down, gold up.’   —   The US dollar and gold often move in opposite directions. When the dollar weakens, gold […]

Read More