Gold continues to rise as Bitcoin hovers below $12,000
Last Updated on 9 August 2020 by CryptoTips.eu
Gold has continued its recent rise, surpassing its ceiling of $ 2,000, as investors view gold as a reserve asset. Gold latest rise has largely been due to uncertainty in the markets and as a result of its natural status as a reserve asset, it comes as little surprise.
The world has been hit by a global pandemic that has disrupted economic growth and this has led to uncertainty among investors. Uncertainty has been the concept that guided decisions in the world.
Investors and traders have modified their way of doing things. And now they are concentrating on investing in what will secure their capital and their money in the long term. That is the role that gold has played so far.
Gold surpasses its ceiling above $2,000
The year 2020 has been a great dilemma for everyone. However, the direct reflection of the effects of the global crisis has been seen in the behavior of financial markets.
And also in the investors’ focus on reserve assets, allowing gold to continue to rise. Despite the recent recovery within the financial markets, many investors know that this boom is due to government aid and there is serious doubt about their profitability in the long term. This is where gold comes in as an asset of value in reserve until the global economy begins to exhibit steady growth.
With gold topping the $2,000 mark this week. Citi economists have clarified exactly what they think is driving the precious metal’s rise, and what it could tell us.
Gold’s spot price, currently hovering around $2,058 per ounce, has risen more than 4% this week and is set for its ninth week of consecutive gains, the longest consecutive weekly increase since 2006.
Bitcoin hovers around 11,700 after correction
Leading cryptocurrency Bitcoin is popularly known as the digital gold since many people hold it as a hedge against inflation. Despite their correlation, both assets are remarkable different with the volatility of Bitcoin well documented. After sitting within the $9000 to $9500 for about two months, the Bitcoin price began its ascent towards $12,000 some weeks back surpassing the $11,500 psychological barrier within a few days.
However, the weekend has brought about a correction in the market and Bitcoin currently trades for $11,680 at the time of publication.
