Gold Price Vs Interest Rate Chart

Real interest rates and the price of gold.

Gold price vs interest rate chart. The following chart below uses more accurate 1980 methodologies to deduce real interest rates. In early april 2020 the price of gold was hovering around 1 675 oz close to the high for 2020 so far. As one can see the gold prices rallied in late 1970s and 2000s when the real interest rates turned negative.

10 year inflation indexed treasury rate in percent green line left axis and the price of gold yellow line right axis london p m. Fed balance sheet vs gold price. The chart below shows that rising interest rates were accompanied by a higher gold price in the 1970s after 1971.

The chart below shows significant negative correlation between real interest rates the 10 year inflation indexed treasury rate is a proxy for long term u s. It fully covers the full fiat currency era beginning in 1971 with nixon s closing of the gold window and the prior collapse of the failed gold price rigging london gold pool. This chart compares the monthly percentage growth of the federal reserve balance sheet u s.

Gold price vs stock market. Gold vs real interest rates chart. Dollar index over the last 10 years.

Treasuries and agency mbs against the price of gold back to 2004. The world gold council notes that the fed rate cut should further support demand for gold among asset holders even if consumer demand for gold declines. Indeed let s look at the chart below which shows the gold prices and the short term real interest rates 1 year treasury rate minus the annual cpi rate.

All of this underscores the correlation between interest rates and gold. Dollar correlation 10 year chart. Gold prices and u s.