Interest Rate: Bond Issuers and Lending Money

interest rate: Gold prices have been boosted by the fall in bond yields or the interest rate paid out by bond issuers which move inversely to their prices, according to The Guardian. Many of the safest sovereign bonds are now negative-yielding, meaning that investors are effectively paying for the privilege of lending money to borrowers, with the upshot that gold is more attractive. The price of one troy ounce of gold peaked at 1,452.60 on Friday morning, the highest point since May 2013, with fears over the Persian Gulf standoff also driving up the price of a commodity that is viewed as a market refuge during geopolitical crises. Investors also tend to buy gold, which has relatively little practical value and yields no income, in times of geopolitical uncertainty. Gold graphic The decline in bond yields around the world has been the most important driver in gold's price rises, said Oliver Jones, a senior markets economist at Capital Economics, a London consultancy. Iran on Friday denied that a US warship shot down one of its drones in the strait of Hormuz, contradictingthe US president, Donald Trump. (news.financializer.com). As reported in the news.