Gold Down, But One Safe Asset is Rallying
Gold price, which jumped above $2000 an ounce a few months ago and rallied almost 22% in 2020, is now out of demand as investors moved their focus towards risker assets, including stock markets. The price of gold fell close to 6% so far this year with expectations for more drop in the days ahead.
The gold price tumbled to the lowest level in the last seven months amid a lack of investors’ interest, lower jewelry sales, and declining demand from central banks.
Pandemic-related destructions have moved trader’s focus towards gold and other safe-haven assets. However, gold prices have been paring those gains in 2021 as coronavirus vaccine and hopes over economic stabilization shifted investor’s focus towards riskier assets. Gold price is likely to trade in the $1700/ounce range in the next couple of months.
Gold down, but One Safe Asset is Rallying
Bitcoin, which investors have recently started considering as a safe haven asset, rallied to a new all-time high of $52K on the back of increasing adoption rate. We have several times predicted that the most valuable currency will cross the $50K level, but that’s a short-term target. The price of the largest cryptocurrency is likely to hit $100K in the near future.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, believes that bitcoin will hit $500K in the coming years and will eventually move to $1 million per coin.
“There were trillions of dollars that were printed and injected into the economy and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was bitcoin,” Pompliano said as he discussed what was behind bitcoin’s surge.