1890's depression, page-32

Slipperymack

Technically an increase increase in interest rates is bad for the price of gold because it increases the opportunity cost of not investing in bonds.

However, some gold investors have created a fiction for themselves that suggests that Fed rate increases will collapse the US economy, destroying the valued of the US dollar and heralding the triumph of gold as the new world currency (conveniently making them very wealthy at the same time).

There is a third school (of which I am a member) that believes that the first of these is immaterial, the second is fanciful, and that the price of gold will continue to be driven by the imbalance in in supply and demand.

Cheers