GOLD - Positive real rates is negative for GoldThe attractiveness of Gold is tarnished
When cash instruments yield a positive rate of return
More and more people are getting on board of higher interest rates
(Dimon, Santelli)
But u can see the Gold price has been inversely correlating with the rate of return for decades.
It's bull run in the 2000's along with the commodity bull , coincided with real rates trending to less than zero. Gold Topped a few months prior to that negative reading in 2012!
The current triple top that has been in place for he past 3 years , seems to be in danger of breaking down if rates continue up the next few years.
The key level to watch is last year's lows in October around $1611
Which I believe is a distinct reality if rates head up to 7%