Gold prices fell more than $17 on the day Wednesday, and while central banks may have played a role in its selloff, the bigger driver is the strong U.S. dollar, fueled by rising interest rates, said Gerald Celente, publisher of the Trends Journal.
"What brought gold down? Well, obviously, rising interest rates, that's no surprise, the higher the interest rates go, the stronger the dollar gets, the opportunity cost for gold rises," Celente told Kitco News.
Another side-effect of a strong U.S. dollar, according to Celente, is the rapid depreciation of emerging markets currencies, like the Turkish lira.
Watch the full interview on KitcoNews.com
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.