How high would Gold's price be if it weren't for Bitcoin?
This year, Bitcoin is still attracting huge investor attention this year, which makes us think is gold lagging behind? Many analysts say that the dynamics of gold prices suffer from all the money invested in the cryptocurrency. But how expensive would Gold be if it weren't for Bitcoin? Here are the top two news stories from the previous week:
1. Bloomberg Intelligence published its own analysis, which says that gold would now be worth about $ 2,300 if it were not for Bitcoin. To get that value, Bloomberg Intelligence looked at copper, 10-year Treasury bond yields, and gold. The report stated that if it were not for Bitcoin, gold would be worth $ 2,300 an ounce in the ratio of the current yield of 10-year Treasury bonds and Copper's price.
2. As gold continues to try to break through the level of $ 1,800, the former JP Morgan managing director said the precious metal could rally in the near future. Gold will be around $ 2,200 this year, since inflation is already rising and the world is in an economic crisis. According to former JP Morgan managing director John Dean, this makes assets such as gold, silver and bitcoin very popular among investors.
What are the forecasts for the gold's price growth in May?
The gold market is currently ignoring low interest rates, increased government spending and rising inflationary expectations.
However, all the attention this week will be focused on very strong macroeconomic data, including reports on production and employment.
In the second quarter, US economic data will be significantly better than expected.
The ISM Manufacturing PMI is due on Monday and the April Nonfarm payrolls report will be on Friday. Meanwhile, other key macro data – manufacturing orders will be published on Tuesday, Nonfarm employment from ADP and ISM non-manufacturing PMI on Wednesday, unemployment claims on Thursday, and unemployment rate on Friday.
It is worth noting that it is necessary for the market to have the conditions that there will be sustained inflation in the US (not short-term) before gold can rise above the $ 1,800 mark on a sustained basis. At the same time, other countries of the world must begin to recover. This would mean continued weakness in the US dollar.
The rising stock market amid the season of strong reporting also prevents gold from rising.
