when interest rates go up are debt increases faster
in the long term it should hurt dollar. if your in business and your rates go higher you have to charge more for your product to cover the extra cost of borrowing. which is inflationary in the long run
Yes, eventually higher interest rates will not attract investors to the dollar - quite the opposite. When they rise in organically, dollar gets stronger - in an uncontrolled financial environment, higher interest rates destroy all lot of asset classes, but gold is not one of them.
If the FED does not keep interest rates low, housing will crumble - if the dollar keeps rising, the sweet spot of exports eases - bad all around. High debt, high interest rates - we need hyperinflation to kill the debt and to tolerate the interest rate climb. Gold will always be gold.