My personal opinion is that our Federal Reserve is nearing the end of their easy money, low interest rate policies of the past few years. Sometime over the course of the next 12 months I believe we will see interest rates start to rise. Since gold pays no interest or dividends, I think it will have a difficult time competing with rising rates. Could the sell off in gold now be a precursor to rising rates? I believe so, as any investment market is a discounting mechanism for future events.
