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Non-Tech : The Woodshed

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To: bull_dozer who wrote (60673)2/4/2024 12:00:29 PM
From: bull_dozer  Read Replies (1) of 60899
 
Rising Rates and Robust Gold Demand?

Real interest rates and gold have always moved in opposite directions. When real interest rates rise, gold falls, and when real rates fall, gold rises.

Over the last three years, this relationship broke down. Real interest rates bottomed at -2.3% in the summer of 2021 and surged to +2.9% by late 2023 – the highest rate in twenty-five years. Given the record surge in real rates, gold should have suffered a punishing bear market. Instead, gold is only 2% below its 2020 peak despite a 400 bps rise in real rates.

blog.gorozen.com
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