Making Sense of Gold’s Relationship with Interest Rates

Author: USGI
Date Posted: March 30, 2015 Read time: 2 min


Orkan Ozkan of American Bullion speaks with Frank Holmes in a special two-part series on 2015 gold trends. Frank shares his thoughts on what could move the precious metal in the second half of the year and says the number-one driver continues to be interest rates. When interest rates rise, the price of gold has historically gone down, but Frank says he doesn’t expect rates to rise anytime soon.

He also discusses the GDP per capita of China and India and how they are highly correlated to the consumption of gold – better known as the Love Trade. Similarly, Indian wedding season is approaching in mid-April, another positive for gold demand looking forward.

Click here for Part I of the interview, and stay tuned for Part II coming soon.

Portfolio manager Ralph Aldis, our other precious metals expert, recently spoke to The Gold Report about what it takes to find the winners and losers in the gold mining industry. Read the full interview here to see what he had to say!

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None of U.S. Global Investors Funds held any securities mentioned in this interview.

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