Video: Myth Busting - Rising Dollar And Interest Rates Are Not A Crux For Gold

Gold erased early losses Monday to head higher mid-afternoon and start the second quarter in the green. However, while some analysts argue that a stronger greenback and rising rates will hinder gold's rise, Maxwell Gold, director of investment strategy for ETF Securities, says not so. Speaking with Kitco News on Monday, Gold looked to bust some myths on the yellow metal. 'Gold and the US dollar historically exhibit a persistently negative correlation since 1976 but this relationship is neither perfect nor permanent,' he said. 'Looking at shorter time frames, however, suggests that there are potential environments in which gold and the USD can both move higher.' Most notably, Gold said, this occurs in periods of heightened turmoil which increases both the demand for defensive assets including gold and the dollar, as was the case in 2008. Gold added that the perception that rising rates spell doom and gloom for metals is not as clear cut as many presume. 'Over the last 40 years, there have been 10 major rate tightening cycles by the Fed during which the performance among metals during these periods, however, was mixed,' Gold said.