RE:Gold is 89% correlated to the 10y real what now, chartAs the chart shows, we are now seeing a collapse of real rates because inflation has taken hold and to compete with it interest rates need to go to 10 or 12%. This cannot happen due to the unprecedented level of low interest debt that has built up in the past few years. Increasing the interest rate in this situation will cause an economic collapse so they cant do it. And that is why gold remains relatively high. There is no faith that a solution can be found to the debt problem. This causes fear of further inflation and the debasement of the currency. Fear drives up the price of gold