Gold isn’t behaving quite as you’d expect right now.

U.S. interest rates have risen by half a percentage point so far this year, as measured by the yield on 10-year government debt. That’s typically bad news for precious metal. About two-fifths of gold demand comes from private investors and central banks who regard it as a safe place to park their savings. When interest rates are close to or below zero, as they have been across the world for much of the past two years, no one is very worried that you don’t get a dividend, coupon or interest payment from your investments in coins and bars. When things start to tighten, however, people shift their funds into assets that get a better return.

Unable to view this article?

This could be due to a conflict with your ad-blocking or security software.

Please add japantimes.co.jp and piano.io to your list of allowed sites.

If this does not resolve the issue or you are unable to add the domains to your allowlist, please see out this support page.

We humbly apologize for the inconvenience.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.