Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

Should gold really be tied to US interest rates

Jay Soloff

Argonath Financial

Should gold really be tied to US interest rates? Last week, gold dropped 2% early in the week on concerns the Fed may hike rates sooner than expected. As Yellen clarified her comments at Jackson Hole late in the week, the yellow metal regained about half a percent. Clearly, gold prices are closely tied to US interest rates at this time. Nevertheless, I believe the relationship between gold and the Fed rate is often oversimplified. After all, the US dollar is heavily impacted by what's going on in the rest of the world. Given all the political and economic turmoil prevalent across the globe, gold and the dollar shouldn't necessarily maintain their typical inverse relationship. We'll see what happens to long-term gold prices once the Fed starts raising rates, but it may not be as cut and dry as this past week showed.


Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.