Top Investment Strategies for Returns
What Is the Relationship Between Gold and Interest Rates?
Gold is traditionally considered a non-yielding asset—it doesn’t generate dividends or interest payments like stocks or bonds. However, the relationship between gold prices and interest rates creates significant investment dynamics that every precious metals investor should understand.
When interest rates fall, gold typically becomes more attractive as an investment. This inverse relationship exists because:
- Lower interest rates reduce the opportunity cost of holding non-yielding assets
- Declining rates often signal economic uncertainty, boosting gold’s safe-haven appeal
- Monetary policy shifts that lower rates frequently weaken currencies, making gold more…
