Interest Rates vs. Gold: 3 ways the Fed impacts gold
Gold and interest rates have an inverse relationship. When interest rates fall, the price of gold tends to rise, and vice versa.
federal reserve
Gold surges in the face of rising yields
Typically, rising yields are bad for gold. Not this year. Rising yields represent an increasing risk of a public debt crisis, for which gold may be the only remedy.
Investors turn to gold as rate cuts loom
When the Fed cuts interest rates this summer, gold and silver stand to absorb billions of dollars as investors redeploy their mountain of cash.
What Causes the Economy to Crash?
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
What Backs the United States Dollar?
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
The Truth About Gold Price Manipulation
Gold bugs often debate the scope and impact of gold price manipulation. Some of these accusations are absolutely true, while others enter the realm of conspiracy.