Gold Surges as Central Banks Ditch Bitcoin – A Shift in Safe-Haven Assets
Daan Struyven, Goldman Sachs’ co-head of global commodities research, attributes this shift to inflation fears and geopolitical risks, making gold the preferred hedge over digital assets.
Gold’s Surge Amid Inflation and Trade Tensions
Gold recently hit an all-time high of $3,008 per troy ounce, with prices up 14% in the past month. Goldman Sachs now predicts it could reach $3,100 by year-end, potentially climbing to $3,300 if uncertainty persists. Central banks are stockpiling gold at seven times the pre-2022 average, signaling waning confidence in US Treasury reserves due to geopolitical concerns.
Bitcoin’s Decline in Comparison
While gold climbs, Bitcoin has dropped 15% this month, currently 23% below its all-time high. The gold-to-Bitcoin ratio suggests Bitcoin is underperforming gold for the longest period in its history, raising concerns of a broader market correction. With $2 billion in ETF outflows and key support levels breaking, analysts warn of further losses if economic conditions worsen.
Gold Remains the Safer Bet
Unlike Bitcoin, gold thrives in economic downturns, reinforcing its role as a reliable hedge. While commodities like copper are rising, oil prices are slipping, underscoring a market shift toward stability over speculation. Unless Bitcoin regains investor confidence, gold is set to remain the top choice for wealth preservation in an uncertain economy.
Editorial Team
Reporter at Coindoo
