Bitcoin gets cold feet Gold rises to 4-month high!

All indications are that gold has recently replaced the highly volatile bitcoin in the market’s favor.

Bitcoin gets cold feet Gold rises to 4-month high!

As of 10:17 a.m., spot gold rose to $1,885.65 per ounce.

Gold had surged to $1,890 on Friday, its highest point since Jan. 8.

What has pushed the price of gold to such high levels?
Bitcoin liquidity has continued to deteriorate recently and the futures market and ETF funds are experiencing a sustained sell-off.

Bitcoin investors are experiencing one of the most volatile periods in its history, with a flurry of bearish news and a drop to $30,016 last week, the lowest level since January.

Meanwhile, the Fed’s maintenance of accommodative policy remains the dominant voice among officials at the moment. Mary Daly, president of the Federal Reserve Bank of San Francisco, said inflation is expected to remain at a high level throughout the year.

Hedge fund managers also increased their gold positions to the highest level in 16 weeks.

All of these factors gave gold investors more confidence and pushed gold prices to continue to sustain the rally. Gold ETFs saw inflows in May.

As previously reported by Wall Street News, institutional investors turned their attention to traditional gold long before the price of bitcoin fell. JPMorgan said this shift could be due to technical-level signals suggesting the end of the Bitcoin uptrend, or it could be that institutional investors believe Bitcoin is currently overvalued relative to gold.

Adrian Day, president of Adrian Day Asset Management, is bullish on gold this week, saying

The tide has turned and people are returning to the gold market, aided by the recent cryptocurrency boom and Washington’s endless spending plans.
Colin Cieszynski, chief market strategist at Wealth Management in Singapore, said he expects gold to continue to help investors exit cryptocurrencies.

Chintan Karnani, head of research at Insignia Consultants, said increased demand for gold ETFs is a positive sign for gold prices in the week ahead.

Posted by:CoinYuppie,Reprinted with attribution to:
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