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Gold bars are pictured at the Ginza Tanaka store in Tokyo in this file photo.
Gold bars are pictured at the Ginza Tanaka store in Tokyo in this file photo.
(Issei Kato/Reuters)

The indicator that should foreshadow gold's next move

The Fed’s indecision on monetary stimulus is making big winners out of precious metals investors.

This chart explains Wednesday’s sharp $53 (U.S.) move higher in gold prices. Historically, gold moves in the opposite direction of U.S. real (inflation-adjusted) interest rates. (I explained why this is the case here).