In this video I discuss the interplay between interest rates and Gold. Gold moves based on movements in real interest rates, which is driven by either rate cuts or rising inflation and inflation expectations.
With respect to interest rates and Gold, keep an eye on the yield curve. When the curve is steepening because long-term yields are rising faster, that is bullish for Gold. However, Gold can selloff during an initial rebound in inflation expectations as the zero-rate type of trade unwinds.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.