Reply To: Increase in the Interest rates will lead to massive bank failures?


When interest rate goes up, gold price will start going down. That makes sense because the cost of currency is higher.

Question: Treasuries that were issued at lower rates will crash since new treasuries will be issued with a higher rate of return. If so, wouldn’t those treasuries with low yield get dumped on the market? What will they buy with the money? My guess is gold, but that would create an unusual case where gold and interest rate go up at the same time? Is that a likely scenario?