Gold Follows Bitcoin to Reach Historical Highs

SEATTLE (Scrap Monster): The prices of gold touched $2,140 per ounce on Tuesday, touching new historical zenith. The prices have surged higher by almost 5% from the prior week. Also, the prices of the yellow metal have soared by more than 11% over the past six months.

The gold prices seem to be in a race with bitcoin in setting new historical record. However, the fluctuation in gold prices have been significantly less when compared with bitcoin. Since the beginning of the New Year 2024, gold prices have only climbed higher by 3.2%, whereas bitcoin prices have skyrocketed by 48%. Also, while gold prices have recorded surge by 65% against the greenback over the past five years, the bitcoin prices have witnessed remarkable jump by 1,496%, data suggests.

According to Jim Bianco, a leading macro investment analyst and researcher, there exists a divergence between the price of physical gold and the flows of major dedicated ETFs such as SPDR Gold Shares (GLD) and the Ishares Gold Trust (IAU). The demand for gold from non-ETF investors has been robust than the offloading by these ace investor funds.

Peter Schiff, a leading advocate of gold investments, signalled at possibilities of fresh rate cuts, which in turn would trigger further jump in gold prices.

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