73.1k views
5 votes
High interest rates depress gold prices, because they make it very expensive to carry

gold as an investment.
O True
False

1 Answer

2 votes

Final answer:

High interest rates do not depress gold prices. Gold is often seen as a safe haven investment during times of high interest rates and economic uncertainty.


Step-by-step explanation:

False. High interest rates do not depress gold prices. In fact, gold is often seen as a safe haven investment during times of high interest rates and economic uncertainty. When interest rates are high, investors may seek to purchase gold as a hedge against inflation or currency devaluation.


Learn more about Impact of interest rates on gold prices

User Wormbo
by
8.3k points