Jerome Powell

Gold

<p>During a large part of the second quarter, the Bitcoin price has been consolidating in the price range between $50,000-$70,000 amid the global economic uncertainty.</p>
<p>On the other hand, amid these macro headwinds, Gold has emerged as a strong performer with nearly 20% gains over the last six months and hit its all-time high level of $2,530 as of press time.</p>
<h2 class="wp-block-heading" id="h-bitcoin-vs-gold-the-real-store-of-value"><strong>Bitcoin vs Gold: The Real Store-of-Value</strong></h2>
<p>The recent macro developments have put Bitcoin to the test once again as a hedge to the global macro conditions. However, it has continued to behave as a risk-on asset and currently moving in tune with the macro developments.</p>
<p>On the other hand, Gold has demonstrated strong characteristics during this market uncertainty. Bloomberg ETF strategist Eric Balchunas stated that Gold is finally repeating the benefits of impressive returns.</p>
<p>He also noted that the SPDR Gold Trust ($GLD) has attracted $2 billion in inflows over the past six weeks with a staggering 23% gains in the last six months while outperforming the US stock market.</p>
<p>Despite this, gold ETFs are still lagging slightly behind the spot Bitcoin ETFs since their launch, with a gap of approximately 500 basis points. However, this disparity is closing rapidly, indicating an ongoing “Store of Value Smackdown” between the two assets, noted Balchunas.</p>
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   <p lang="en" dir="ltr">Gold is finally getting rewarded for its big returns, <a href="https://twitter.com/search?q=%24GLD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$GLD</a> took in $2b in last 6 wks, after going up 23% in past 6mo, crushing stocks. That said, it's still trailing bitcoin since ETF launch but not by much, maybe 500bps, gap closing quickly. Store of Value Smackdown in effect.. <a href="https://t.co/jq5Zgfv5tH" rel="noopener noreferrer nofollow">pic.twitter.com/jq5Zgfv5tH</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1825858845123457468?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 20, 2024</a>
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<p>The spot Bitcoin ETFs have seen strong fund inflows in the US thereby ranking them among the top ETF launches this year in 2024.</p>
<h2 class="wp-block-heading" id="h-will-btc-continue-to-outperform-gold"><strong>Will BTC Continue to Outperform Gold?</strong></h2>
<p>Recently, Bloomberg’s commodity strategist Mike McGlone warned that Bitcoin could be leading the reversion of the risk assets amid its underwhelming performance since March. Previously, McGlone also predicted that Gold could outperform Bitcoin this year amid macroeconomic uncertainties. So far, Bitcoin leads gold by a comfortable margin in year-to-date gains.</p>
<p>Gold buff Peter Schiff, who expects a major economic crash, wrote:</p>
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 <p>“Gold just had two consecutive daily closes above $2,500. Many gold mining stocks hit new 52-week highs today. The stage is set for a major bull market. I expect precious metals mining to be the best-performing sector, not just for the remainder of this year, but for this decade.”</p>
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<p>All eyes will be on the Jerome Powell speech on Thursday following the FOMC meeting. If the Fed decides to pivot in September with a 50 bps rate cut, it could bode well for Bitcoin over Gold.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2024/08/21/gold-quickly-closing-the-gap-with-bitcoin-in-store-of-value-race/" rel="noopener noreferrer nofollow">Gold Quickly Closing the Gap With Bitcoin In Store-of-Value Race</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Gold Quickly Closing the Gap With Bitcoin In Store-of-Value Race

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