Raising interest rates is a tight monetary policy, which will increase the deposit income of banks and stimulate investors to deposit. Thereby reducing the circulation of money in society, which will indirectly reduce the liquidity of the stock market and lead to a sharp decline in stocks.

Moreover, after raising interest rates, it is a negative phenomenon for the consumer sector and the real estate sector. For example, after the real estate interest rate hike, the debt interest cost increases, which is not good for heavy assets and high debts. However, the consumer sector has reduced the money supply to a certain extent after raising interest rates, which is also unfavorable.

Will gold rise when US stocks plummet?

Generally speaking, a sharp decline in the US stock market will lead to capital flight from the stock market to other investment fields, such as the gold market, thus stimulating the rise of gold. But there are also some special circumstances: US stocks will plummet, and gold will also plummet. For example, after the U.S. stock market rose sharply at the end of last Friday, the international gold futures, which have always been regarded as safe-haven varieties, once fell to 1.450 USD/ounce, a drop of as much as 250 USD/ounce.