Will high interest rates crash gold's price?

TreasureHunter

TreasureHunter

Well-Known Member
So, gold went above 2,000 $, but now even the Fed admits that they're expecting "uncomfortably high inflation rates" for another 12 months (my prediction: at least several years!).

Turkey and Europe are experiencing 10+% inflation.

The Russian invasion of Ukraine is still ongoing and the west has launched sanction that will hurt everyone. Europe will not survive unless it pays through the nose for "alternative energy sources", because they are so tightly connected to the Russian gas and oil.

Higher interest rates on USD and EUR and other European currencies will likely be pushed forward later this year, all prices will rise. Many products will become scarce.

What do you think, what will happen to gold's price this year and next year?

Will higher interest rates push gold's price down?

I think this is not a guarantee, because if money gets eroded a lot (e.g. interest rates above 10 %), then people will rather turn to a safe haven (like gold) instead of accumulating money at the bank, waiting for returns (through interest), because that money will be worth less in a few months.

But I think if the interest rates are small enough, then people might feel it's worth keeping their wealth in USD, EUR, CHF, GBP etc.
 
Depends on where you live i guess. We cant raise rates in the US so its a non issue for us. We are stuck where we are with rising inflation and no end in sight.
Gold is just going to do what it always does.

No one with any sense will be in any devaluing currency or the crappy usd. They are all going down.
 
I believe precious metals are a parallel or alternate economy to the traditional banking system. They are a means to store your wealth outside of the system. Unless you make PMs your main income source you are stuck within the mainstream revenue streams.

You are in effect running with the hares and hunting with the hounds. The price of gold becomes irrelevant depending on where you see the economy headed.
 
Jim Rogers reckons there will be a post-war correction.
I'm still on the fence about him compared with the other clowns that show up in PM bull markets
 
TreasureHunter said:
What would you invest in or, preserve your wealth with? (besides food, medicine and the technicals...)
Click to expand...
The only reason you’d be worried about anything crashing is if you bought everything at the top.
There is a calculation on how to play gold.
How much to hold in % to your wealth
When to sell and how how much to sell
When to buy and how much to buy.
Remember gold is a store of wealth, it still is when the price is going down
 
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Cryptos follow the etf markets almost exactly and are in a downtrend. You can follow the crypto market simply by watching wall street and theres no difference.
Metals are going up and the weak measly interest rate hikes wont do anything. Its already far too late for that now and the price increases arent going anywhere but up.
 
As usual the value of gold is not changing, only the value of dollars we exchange to buy or sell it. I have no educated response on what interest rates will do to the price and have subscribed to this thread instead to see if i can learn a bit more.
 
The US government is the biggest borrower. They can't even afford to pay 5% on the 30 trillion they have borrowed so far.
 
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