Gold Price Rises Strongly as Bitcoin Value Shows Bullish Momentum (The Merkle)
A lot of things are happening in the world of finance which seemingly go by unnoticed. One of the biggest developments this week is how the price of gold – per troy ounce – has skyrocketed over the past few days. Finding the exact reason for this sudden spark of interest is rather difficult, albeit it is not entirely surprising given the current financial turmoil plaguing big parts of the world.
Gold Price Shows Signs of a Bitcoin Surge
It is quite uncanny to see how all of the financial markets around the world are seemingly correlated to one another. The price of gold and the Bitcoin price have both shown serious bullish signs in very recent times. While that might be shrugged off as a coincidence by a lot of people, it seems to be a sign of what is yet to come. The financial sector is under a lot of pressure and a fair few wealthy individuals are diversifying before things get out of hand even further.
As can be seen when looking at the gold price charts, a very interesting value has been reached this week. By nearly touching the $1,400 level for the first time in over a year, the demand for bullion is seemingly skyrocketing once again. Such spikes are not entirely new, as they tend to occur on quite a regular basis
The previous time such a massive price spike occurred, the price of gold surpassed $1,800 in very quick succession. It never remained at the level for very long, however, as the value collapsed to the low $1,100 range in the years after. Only time will tell whether or not history will repeat itself in this regard. For now, the momentum looks rather similar, but that doesn’t mean the same scenario will play out.
Finding the exact reason for this surprising surge is a bit more difficult than one would think. It would appear Asian investors, as well as central banks, are massively buying gold. This is in line with how both China and Russia have steadily increased their gold supply over the past few decades. In the United States, the actual gold supply has dwindled over the years, which always puts an interesting spin on trends like these.
Additionally, society finds itself at an interesting albeit worrisome crossroads. Overall global economic growth is stagnating and even showing signs of a reversal. Additionally, there is the geopolitical uncertainty in the US, China, and other regions. All of those developments will have global financial repercussions, either sooner or later. The current status quo as people know it may cease to exist in the years ahead.
Scarcity will always be a driving factor where the gold price is concerned. Speculators hope the same will apply to Bitcoin, as it is effectively more scarce than gold by quite a margin. For now, it seems both gold and Bitcoin enjoy an upward spell of momentum, although one never knows when that uptick will come crashing down again.
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