Gold fell becuase the $US went up. $US movement is not totally under the control of interest rates but it is an influence.
The $US has fallen from a $US index of 120 to around 80 and gold has risen from $US280 to $US430.
There is the possibility that with the high US debt load that interest rate rises will tip the economy lower. The Fed will be limited in rate rises to counter inflation - that is the inflation scenario that gold likes.
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