Could Negative Interest Rates Hit the U.S.?

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Monetary conditions in the U.S. are beginning to mirror those of Europe, and interest rates could still head lower still, this according to Will Rhind, CEO of GraniteShares.

“At the moment, the 10-year [rate] was down today as well. It just feels to me like interest rates are going lower, and now with interest rates at the zero bound, I think the conditions are the same as they are in Europe where we have seen negative interest rates,” Rhind told Kitco News.

On gold prices, Rhind said that major headwinds for gold, namely a stronger U.S. dollar and higher interest rates, are likely to be significant.

“I don’t think the dollar will strengthen too much from here, and if anything, will weaken over the next couple of years. The chances of raising interest rates clearly have to be very, very low at this time,” he said. “The downside for gold looks to be very limited at this time.”

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