On Gold Prices and US Interest Rates

Published in Business Line on Nov 09, 2006

Conventional Economic theory tells us that US Interest Rates has a negative correlation with Gold Prices. But historcial data for the last 35-years indicated in the graph shows exactly the opposite trend.

The article explains what truly drives Gold prices over long periods in time. Also as I have explained in my previous articles, Interst rates are set to rise dramatically in the US and this is likely to increase Gold prices many times over in the next decade.