“When you look at the gold market, and in particular try to understand the drivers, of growth, over the long run, wealth and economic expansion are really, really important and they drive fiscal demand,” Artigas told Kitco News on the sidelines of the Mines & Metals Conference in New York.
Artigas added that higher interest rates may not necessarily mean lower gold prices, as is the consensus amongst many analysts. “Historically, higher interest rates do not necessarily result in falling gold price, because interest rates would need to be really high in real terms, at least 2.5% real, for them to properly start creating pressure,” he said.
“Wealth and economic expansion often happen in rising rate environments, so you have that counter balance.”
- Source, Kitco News
