Gold prices are falling sharply, with precious metal dumping 8% so far this week and behaving more like Bitcoin than a stable store of value in times of economic uncertainty. The metal is now down 15% from its late January all-time high of $5,500 per ounce, slumping to a ten-week low of $4,550 on Wednesday, according to GoldPrice.
Key takeaways
Quick scan — what you need to know:
- Gold prices are falling sharply, with precious metal dumping 8% so far this week and behaving more like Bitcoin than a stable store of value in times of economic uncertainty.
- The metal is now down 15% from its late January all-time high of $5,500 per ounce, slumping to a ten-week low of $4,550 on Wednesday, according to GoldPrice.
- “Gold was supposed to hedge the Iran war – instead it traded like everything else: down,” wrote Bloomberg analysts on Tuesday.
- Gold Little Correlated With Stocks The big move is something that is expected in volatile crypto markets, not stable gold.
Background
What led here, in plain terms:
- “It’s a harsh but necessary reminder that the metal is little correlated with stocks and can behave just like another risk asset when liquidity tightens.” Bloomberg ETF analyst Eric Balchunas…
- “Both unpredictable but valid asset classes, and shouldn’t be judged based on short time frames.” Wrote today about how investors just got a big-time reminder that gold has *zero* correlation to…
- Big difference.
- Good diversifier but unreliable hedge.
Why it matters
Why readers and decision-makers should care:
- Spot Bitcoin prices are holding around $70,000 at the moment and remain in a sideways channel that began in early February.
- However, it does seem to be making higher highs and higher lows, which could be considered bullish.
- The post Gold Fails Safe Haven Test as Prices Plunge Amid War and Uncertainty appeared first on CryptoPotato.