People often see correlations between gold futures and Bitcoin, as they are both quite valuable with potential for a value increase. Now that the Bitcoin price is rising, the value of gold seems to follow a similar trend. Or to be more precise, the gold miner stocks are increasing in price, which could indicate a future gold price increase.
Gold Futures Surge By Over 11%
This week has been kind of interesting for traders keeping a close eye on the gold futures charts. With the best day in over seven years on Friday, the future hasn’t look brighter in a very long time. A big upswing was noted in the GDX fund, which saw a price increase of 11.24% in one day. This was the highest increase since the end of November 2008.
But there was more good news, as all of the 25 ETfs’ US equity components saw a price increase, and over half of them saw a double-digit increase. GDX was also the most actively traded stock across all US exchanges on Friday, with a volume of over 170 million shares. An excellent day for traders of gold futures, to say the least.
Financial experts attribute this increase to the weak jobs data which was published earlier this week. The US economy is still far away from recovering to its previous levels, and the poor prognosis did not put investors’ minds at ease. Treasury yields, on the other hand, saw a significant drop in value once the news broke.
Gold is often referred to as a safe-haven asset, due to its scarcity and relative ease of exchange. Bitcoin is a different type of asset entirely, yet consumers and investors start to see the value of cryptocurrency as a portfolio diversification tool. Interestingly enough, the Bitcoin price has also gone up over the past few days, albeit that has probably nothing to do with the US jobs market.
Bitcoin Continues To Rally
Enthusiasts of the Bitcoin cryptocurrency have had plenty of reason to celebrate as of late. The Bitcoin price is on a continual upward trend, similar to how gold futures are seeing positive signs of value increase. Despite a slight stumble along the way yesterday, prices are approaching the US$575 mark once again.
Gold futures and Bitcoin are on similar paths, albeit both for different reasons. Investors want to put their money in strong assets which have a promise for value gains in the future. Both Bitcoin and gold futures are on that shortlist, as the regular stock market remains far too volatile.
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