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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.

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