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can you re explain this in super simple terms Interest rates have a big influence on gold prices because of a factor known as opportunity
can you re explain this in super simple terms Interest rates have a big influence on gold prices because of a factor known as "opportunity cost." Opportunity cost is the idea of giving up a near-guaranteed gain in one investment for the potential of a greater gain in another. With interest rates holding near their historic lows, bonds and CDs are, in some cases, yielding nominal returns that are less than the national inflation rate. A falling U.S. dollar tends to push gold prices higher because other currencies and commodities around the world increase in value when the dollar falls. On the contrary, a strengthening U.S. dollar often comes about because of a growing U.S. economy
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