Actually in long run there is no correlation its just for some months there might be some correction and appreciation but actually its very negligible in long run.
The relation between an Interest rate hike and gold price is correlated because as when there is a rate hike investors believe that key interest rate, bonds and dividend-paying stocks typically pay higher rates then gold.Because gold doesn’t pay income, higher rates increase the “opportunity cost” of owning gold.But historically it is proven that when ever there is a rate hike 3 to 4 months before the rate hike there is a 6 to 10 percent correction in the gold prices but gold recovers immediately after a rate hike.
During the most recent bull market in gold in the 2000’s, interest rates declined significantly overall as gold prices rose. However, there is still little evidence of a direct, sustained correlation between rising rates and falling gold prices or declining rates and rising gold prices, because gold prices peaked well in advance of the most severe decline in interest rates. While interest rates have been kept pressed to nearly zero, the price of gold has corrected downward. By the conventional market theory on gold and interest rates, gold prices should have continued to soar since the 2008 Financial crisis Also, even when the federal funds rate climbed from 1 to 5% between 2004 and 2006, gold continued to advance, increasing in value an impressive 49%.