♟ Interest Rates, Gold - What's the Correlation?

See how the upcoming cuts could boost the value of metals [Trade of the Day Logo] [View in browser]( [Federal Reserve]( ["Lower interest rates typically increase demand for gold, pushing prices higher."]( Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance [Karim Rahemtulla] While it's all but certain the Fed will cut interest rates next week, it's important to know what this could mean for your portfolio. Yesterday I wrote about [8 sectors to play]( after the rate cut. And today I'll be showing you how another important sector could be affected. I'm talking about metals. Specifically gold. Now, there is generally a negative correlation between interest rates and gold prices. When interest rates fall, gold prices tend to rise, and vice versa. Through history, real interest rates (adjusted for inflation), have coincided with rising gold prices. For example, after the 2008 financial crisis, central banks cut rates to near zero, and gold experienced a strong bull market from 2009 to 2011. Similarly, gold prices surged in 2020 when central banks slashed interest rates in response to the COVID-19 pandemic. [AI DIVIDENDS: No. 1 Way to Collect Passive Income]( Right now, a handful of AI companies are paying passive income to investors... And getting started couldn't be easier! To prove it, I'm giving you my Free AI Income Playbook (FREE OF CHARGE). [Click here to get it for free.]( Lower interest rates also tend to have a significant impact on gold prices for several reasons: 1. Opportunity Cost When interest rates are low, the potential returns from interest-bearing assets like bonds or savings accounts decrease. In return, the opportunity cost of holding non-yielding assets like gold decreases. . This makes gold more attractive. 2. Weaker Currency Lower interest rates often lead to a weaker domestic currency. Since gold is priced in U.S. dollars (USD) internationally, a weaker dollar makes gold cheaper for foreign investors, driving up demand and potentially pushing up prices. 3. Inflation Hedge Low interest rates often accompany concerns about inflation, as central banks lower rates to stimulate economic growth. Investors might buy gold as a hedge against inflation, increasing demand and supporting higher prices. 4. Investor Sentiment Gold is considered a safe-haven asset. In a low-interest-rate environment, if investors perceive risks in the broader financial system (e.g., due to loose monetary policy), they might flock to gold as a store of value. Lower interest rates typically increase demand for gold, pushing prices higher due to reduced opportunity costs, currency depreciation, inflation concerns, and a shift toward safe-haven assets. [Logo] YOUR ACTION PLAN We're about to enter a period of lower interest rates, which could last years. Right now we're positioning ourselves for this with some gold plays in [Catalyst Cash Outs Live](. [Click here to join us in several unique ways to play a potentially huge move in gold.]( --------------------------------------------------------------- [Smiley] FUN FACT FRIDAY Crypto is nasty work, according to a recent study: According to an academic paper by researchers at the University of Toronto and the University of Miami, crypto owners exhibit higher levels of "dark" personality traits such as narcissism, Machiavellianism, psychopathy and sadism. --------------------------------------------------------------- INSIGHTS YOU MAY HAVE MISSED [Rate Cut]( [8 Ways to Play the Fed's Next Move]( [Image of the Oracle building]( [How I Closed a Double-Digit Winner with One Simple Trade]( [An Absolute Beast - Costco]( [A Bull Flag Setup with Upcoming Earnings]( [Image of a DNA strand]( [Biotech Sector Stands to Win As Fed Rate-Cut Cycle Begins]( [The David to Nvidia's Goliath: Tiny Startup Solving AI's Biggest Challenge]( [CPU concept]( While Nvidia grabs the headlines, a little-known company is quietly reshaping the AI landscape. 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