Gold continues to strengthen its position in the global market, fueled by economic risks and US tariff policies. Experts note that central banks are actively investing in gold, driving its growth.
Gold Price Increases and Their Causes
According to Trading Economics, recent gold prices hit an all-time high of $3,008 per troy ounce, then slightly decreased. Goldman Sachs' co-head of global commodities research, Daan Struyven, noted that increased gold purchases by central banks are linked to fears of trade wars and inflation. While commodities generally rise together, the market shows partial divergence; oil prices are falling, whereas gold and copper are uptrending.
Inflation and Tariffs: An Expert's View
According to Struyven, US presidential tariffs are pressuring inflation levels, thereby increasing demand for gold as a hedge. Struyven believes that tariff policies put gold front and center for investors looking to minimize risks.
Bitcoin's Position Compared to Gold
Gold has increased by 4% in the past month, while Bitcoin has lost over 15% of its value and is currently trading 23.6% below its all-time high. Bitcoin and gold are diverging: Bitcoin's support level against gold, holding for around 12 years, has recently been breached. According to analyst Northstar, this signals significant changes in the digital currency market.
The market shows mixed dynamics in commodity groups due to economic tensions and tariff measures. As gold continues to rise, Bitcoin struggles to remain afloat, losing its appeal to investors.
