Gold is “Headed for the Moon,” What Does it Mean for Bitcoin as a Store of Value Asset?
- Gold is at its all-time highs in 73 countries
- The yellow metal is “going to go nuts” all thanks to money printing, QE, & interest rate cuts
- This would be “great for BTC,” further help in determining if it is becoming a true macro vehicle
Gold prices are hovering near $1,500 per ounce on Monday as the US-China trade war drags on and fears of a global economic slowdown increases.
As we start the week, spot gold is steady at $1,496 per ounce while US gold futures have been flat at $1,508 an ounce.
Gold is at its all-time highs in 73 countries
Bill Murphy, Chairman of the Gold Anti-Trust Action Committee (GATA) is very bullish on gold as he points out that yellow metal is at its “all-time highs in 73 different countries.”
In Canada, gold is $100 higher than its previous ATH and US dollars’ gold high is around $1,900 per ounce, and he says that level is gonna break out and start heading for $3,000.
After hitting multi-year highs, the yellow metal is still firmly in positive territory with strong fundamentals behind gold. While the price is edging lower, it’s just a correction needed before moving higher.
“Gold and silver are just going to go nuts because there is no room on the downside in a lot of these markets,” predicts Murphy.
“if they don’t keep printing the money and going to QE and keep interest rates low, it’s going to cause chaos. All I can say is I think gold and silver are headed for the moon,” he added.
On the Weekend, Goldman Sachs cut down its fourth-quarter forecast for US growth as it said recession risks were increasing due to the US-China trade war.
While US President Donald Trump said he’s not ready to make a deal with China, White House trade adviser Peter Navarro said they are still planning to hold another round of trade talks with Chinese negotiators.
What about Bitcoin?
During the first week of August, just like gold, Bitcoin enjoyed an uptrend as well, going from around $10,000 to above $12,300.
However, since then we have dropped to $11,350 on Monday, with 24 hours loss of 0.70% while managing the daily trading volume of just $616 million. However, Bitcoin’s recent surge showed that the flagship cryptocurrency is moved by macro events.
The fact that “the correlation between Gold and BTC currently is about .8,” as noted by trader Cantering Clark means, if gold is going to go nuts, the leading cryptocurrency can enjoy a spike in price as well.
1 – I am curious to see how equities respond this week, and more so curious to see how Gold responds if equities get a bit of relief.
The correlation between Gold and BTC currently is about .8
— Cantering Clark (@CanteringClark) August 12, 2019
Clark further points out, “the move up in Gold is likely just starting as it is an indication of the current climate, ultimately this would be great for BTC.”
This would also help in determining if Bitcoin is becoming a true macro vehicle, and remains “more aligned as a risk-off asset.”