Gold price hits four-month high after cryptocurrency crash

After the crypto market sell-off in mid-May, the price of gold has rebounded significantly.

The price of gold continued to rise on Tuesday, hit According to Data from TradingView, at 3:00 am Eastern Time, US$1,887 per ounce.

Last week, after the price of gold fell to US$1,681 on January 8, it reached the highest price of US$1,889 since January 8, a four-month high. At the time of writing, spot gold is trading at $1,882, which is up about 0.1% in the past 24 hours.

Spot gold year-to-date chart. Source: TradingView

The accelerated growth of the gold market was accompanied by a sharp decline in the cryptocurrency market that began on May 12. Ingredients According to data from CoinMarketCap, the total market value of cryptocurrencies of more than 2.5 trillion U.S. dollars began to decline continuously, and eventually fell below 1.3 trillion U.S. dollars on Sunday.

30-day chart of total cryptocurrency market value. Source: CoinMarketCap

Bob Haberkorn, senior market strategist at brokerage firm RJO Futures, believes that gold prices may rise Attributed to The dollar is weak, and U.S. Treasury yields have fallen. He said: “If the data is unexpectedly better than expected, it may be negative for gold, because the possibility of the Fed raising interest rates will be earlier than later, not later.”

Many financial analysts have compared trends in the cryptocurrency and gold markets. Experts from JP Morgan Chase hinted last week that large institutional investors are dumping Bitcoin (Bitcoin) Support gold.

The bank said the new trend reversed the driving force of the main bullish market Bitcoin price exceeds $64,000 In mid-April. At the time of writing, Bitcoin was trading at $37,111, which rebounded after hitting $30,000 last Wednesday.