or
Remember me
Back
It's quite simple. If the United States lowers interest rates even by a quarter percent this month that will drop interest rates for US treasuries paying lower interest as well as other US market securities that pay interest. That will slightly lower demand for US, treasuries but not completely. Some of that money will end up in the gold markets, increasing the demand for gold.
Gold does not pay interest or offer a coupon so lower interest rates on US treasuries will attract more demand as well as other assets.
Receive investor kits and email updates from Stockhouse and directly from these companies.
