Definition
An interest rate minus inflation: what you actually earn after prices rise.
The story
If your savings account pays 4% and prices rise 3%, you're only 1% richer in what you can actually buy. That 1% is the real rate. If inflation were 5%, you'd be falling behind even while earning interest.
Why markets watch it
Gold pays no interest, so it has tended to do better when real rates are low.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms