"I think we can have quite a significant change if there's a rate rise in December. I think that really increase the likelihood of a stock market sell-off coming into next year. So, we've already got a strong dollar as you know at the moment, I think that an increase in rates at this level, it's difficult to see how much further the dollar can go from here," Rhind told Kitco News.
Rhind added that the economy is already showing signs of weakness and any further disruptions could bring volatility to equities.
He noted that gold is not correlated to the equities market as much as it is negatively correlated on the dollar.
"Gold is not correlated to equities. Gold is actually negatively correlated to the dollar. And so really what happens in a stock market selloff is the equity market declines, but that doesn't necessarily mean that the dollar also declines," Rhind said, noting that when stocks fall, the typical investor response is to flock to save havens like the dollar, which is bad for gold.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.