On Wednesday, expectations of interest rate hikes in the United States limited profits and put pressure on gold. US gold futures for delivery in December 2018 fell to $ 1,211.50 per ounce, pressured by the advance of global stocks and after the dollar index fell to daily lows. Several factors limited the rise in gold, including expectations of further increases in interest rates in the United States this year, record bets to price declines and sales of funds traded on the stock market. Analysts and operators are alert to the outstanding psychological level of the $ 1,200. Gold fell below this mark for the first time this August since March 2017, giving it momentum to touch a minimum of $ 1,159.96. Gold prices are on track to fall for the fifth month in a row, becoming the longest streak since early 2013.
My understanding is very basic. I thought that with rampant inflation and with our central bank selling huge reserves of dollars every day and with the economy basically imploding, that the price of the gold would be higher. But it's still dropping.
I read that if the interest rates in the US rise, then gold drops and vice versa. I dont know about global stocks, the dollar index or funds. I'm just the average Joe trying to protect his wealth.
Would gold be a good investment in case of hyperinflation and a possible (certain) default of my country?