According to the Chicago Fed, three chief factors influence gold prices: inflationary expectations, real interest rates, and economic pessimism. A rise in expected inflation increases demand for gold as an inflation hedge, while lower real interest rates reduce the opportunity cost of holding a non-yielding asset. During periods of “bad economic times,” gold’s protective status further boosts its appeal.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.