Why Gold Remains A Good Investment Despite Rising Interest Rates

(MENAFN- Investor Brand Network) Under normal circumstances, the recent Fed rate hike would have caused a significant selloff in the gold market. This is because gold is non-yielding and higher interest rates make the opportunity cost of holding gold very high. However, gold barely moved when the Fed and the Bank of Japan both raised lending rates. Why is this happening?

As investors and central banks continue adding gold to their holdings, the long-term outlook of the market remains strongly bullish in a way that interest rate increases cannot easily reverse. In such an environment, firms like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) can expect to continue getting solid revenues from the gold they bring onto the...

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