Higher Rates, Higher Gold Prices
By GCRU Gold News on Wednesday, February 8 2017, 22:54 - Permalink
The notion that gold will simply roll over and die and that a new bull market leg higher is impossible with interest rates rising, is brain-dead.
Just consider the last big bull market in gold, from 1973 to 1980, when interest rates were soaring as was the price of gold and most commodities.
Sure, inflation was roaring higher then too. But that doesn’t negate the fact that gold soared with higher interest rates.
Instead, it proves my point: Until interest rates get well ahead of inflation — which is something we will not see for years based on my models — they will not be negative for gold!