Gold prices has been believed to drop when interest rates go up.

However when gold prices continue to rise during the 2008 financial crisis, the federal funds rate continued to grow.

This shows us that gold may no longer be a hedge for the market. Gold as an asset class, is also affected by its actual demand by manufacturers in electrical components.

Any stock backed by gold in my opinion is quite risky. We do not know the actual supply of gold in this world, whether they were kept in hiding, not found underground or simply too much scattered across. Who really controls the gold prices?