Sherlock Holmes famously solved the Hound of the Baskervilles case by asking: "Why did the dog not bark?" The same could be asked of the gold price. Global stock markets are, with some notable exceptions, riding at or close to record highs, inflation is widely thought to be on its way back, and the world seems to be on the brink of a global trade war. Yet not only is the gold price not rising, it is actually falling. The gold price in dollar terms has just dipped below its year-to-date level of $1,224 an ounce. What’s going on here? The most widespread answer to that question is: "rising interest rates". The yield on the global benchmark for interest rates, the US 10-year treasury bond, breached 2.5% earlier this year, breaking a trend evident since the global financial crisis in 2008. It is now higher than that, at 2.9%, and JPMorgan CEO Jamie Dimon said recently it’s likely to go up further and breach 5%. "US interest rates are like kryptonite for the gold price," says one gold in...

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