@Yogesh_s bhai - What is the correlation b/w US Fed Rate hike and Gold? There is contradictory opinions on the topic.
As per one of the investopedia articles - "Rising and higher interest rates may in fact be bullish for gold prices, simply because they are typically bearish for stocks. ... Higher interest rates mean increased financing expenses for companies, an expense that usually has a direct negative impact on net profit margins."
Came across this chart (US Fed rate vis a vis Gold prices), which suggests its actually diretly proportional.
Another piece, as per which -
"Gold prices suffer on likely US Fed rate hike
Anticipation of an interest rate hike by the US Federal Reserve put gold prices under pressure, correction to the tune of $40-50/ounce expected"
There are so many studies i found, looks like the opinion is mixed.
I believe in short term, rise in fed rate is bearish for gold, but in long run it is bullish. Your thoughts on this?