“Looking ahead, the Fed will likely keep interest rates low for some time. Assuming it also uses monetary policy to help keep inflation positive, real rates are likely to remain negative — and support gold prices — for a while,” Koesterich wrote at the iShares blog.
“Gold tends to do best when fiat currencies — paper currencies without any intrinsic value — depreciate. In recent years, many governments, including the United States, have been content to allow their currency to depreciate as a method to stimulate economic growth,” the strategist added.
iShares Gold Trust (NYSEArca: IAU)
