Just like in Bitcoin, the price of gold has also seen an increase in percentage amid fears over US debt. Following a week of uncertainty, that saw the U.S. dollar yield and that of the 10-year Treasury nosedive this past week, gold is now up 1.32%.
Gold’s Spike Linked to US Debt Fears and other factors
By the end of September, Bitcoin (BTC) and the crypto-economy as a whole, already saw billions pumped back into the crypto markets. And as at today, the entire crypto-economy is worth about $2.23 trillion with BTC taking up 41% of that valuation ( $909 billion in clearer terms).
Gold on the other hand, has not really been moving at the same pace as BTC, seeing only a 1.3% percentage gain in the last 6 days. However, market analysts like precious metal (PM), speculators, and even Gold bugs, have all pointed to last week’s soft dollar contributing to the rise of gold.
Gold Spikes on US Debt Fears as Finance Platform Renounces Earlier Gold Price Prediction
As at last week, both the U.S. Treasury yields and the dollar index declined in value and PMs saw a quite significant demand of other fiat currencies. Also, there’s been some level of apprehension by market participants who are worried about the Federal Reserve’s latest moves. Investors are rightly worried however, going by the Federal Reserve’s discussions about reducing heavy purchases of assets on monthly basis, and then raising the benchmark rate next year.
But as a matter of fact, the major contributory factor to these market fears, is the thought of the U.S. running out of funds, therefore raising the debt ceiling, or possibly even, defaulting on its debt.
While Gold sure looks to be back on track and on the rise, predictors like the FX Empire are already renouncing their previous prediction for the price of Gold to end the year on a high.
Empire has said that it’s clearly wrong and irrational to think its Gold forecast high of $2,401 is still possible, despite still being some months away.