Interest rates are not always the major influence on the price of gold, GoldMoney research director Alasdair Macleod writes today. "Traders in paper markets," Macleod writes, "are interested only in short-term relationships, and therefore pay little or no attention to long-term fundamentals. If we consider the relative increases in the quantity of gold and a fiat currency such as the dollar, gold today is demonstrably undervalued compared with where it was before the Lehman crisis."
Macleod's commentary is headlined "Gold and Interest Rates" and it's posted at GoldMoney here:
http://www.goldmoney.com/research/research-ar...interest-rat...
