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Daniela Cambone: What happens if this cut doesn't happen? Because we've seen how gold's been reacting. We saw the momentum especially last week. What happens to gold then?

Will Rhind: Well, I think gold still does well in that environment because the expectation in terms of the market right now is so overwhelming against or for a rate cut that we have right now from a probability perspective, more chance of rates going to zero, then we do one hike in the market, right? So at the moment you've got real interest rates coming down or expectations of real interest rates coming down. And that's obviously positive to gold. So anything that happens that further cements that ie. a nominal rate cut, I think only helps gold.

Daniela Cambone: Do you feel that's really what's driving the rally that we've been seeing the momentum behind gold? Or are there other factors you're looking at right now?

Will Rhind: I think there's some other factors. I mean clearly the geopolitical situation in the Middle East, with regards to the oil tankers and the situation there that certainly caused oil to spike has benefited gold little bit. But in my mind, the overwhelming factor here is the dollar and the interest rates and particularly the real interest rates. And, you know, that's one of the best correlations or relationships that we have in terms of real interest rates and gold. And so when you see real interest rates coming down the opportunity cost obviously of holding an interest rate, a zero interest rate yielding asset like gold diminishes, and that's positive for gold returns.

(Kitco News) - Chances are skewed in gold's favor, as it is more likely than not that the Fed will maintain their dovish stance, this according to Will Rhind, CEO of GraniteShares.

"The expectations, in terms of the market right now, are so overwhelmingly for a rate cut that we have, right now from a probabilities perspective, more chance of rates going to zero than we do one hike in the market," Rhind told Kitco News. "So, at the moment, you've got real interest rates coming down, or expectations of real interest rates coming down and that's always a positive to gold."

Rhind noted that aside from the Fed, the U.S. dollar still has the most weight on the gold price direction.

"The overwhelming factor here is the dollar and the interest rates and particularly real interest rates. That's one of the best correlations or relationships that we have, in terms of real interest rates and gold, and so if you see real interest rates coming down, the opportunity cost obviously of holding a zero-interest rate asset like gold diminishes, and that's positive for gold," he said.

Watch the full interview on Kitco News

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.