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


Lower demand for existing Treasuries is somewhat it not completely counter-balanced by increases demand for new Treasuries. It’s not necessary for demand for gold or any other asset to go up under such conditions.

Gold prices and interest rates can rise together. It depends on what causes interest rates to rise. If the cause is price inflation, then the two can rise together. This happened in the late 1970s.