Not only do lower rates reduce the opportunity costs for gold, they also signal the often-desperate instability which drives the demand for that kind of severe hedging in the first place. Fear gold and the expectation for, as well as the consequences of, lower rates go together…… It is an instability hedge which includes inflation as one form. As we saw in 2008 and 2009, it is also a deflationary hedge as nothing more than one other form of instability.
https://www.alhambrapartners.com/2019/08/27/the-corroboration-and-costs-of-fear-gold/
