In the aftermath of the Mid-May crypto market sell-off, gold has seen significant price recovery.
Gold prices continued to inch higher on Tuesday, hitting $1,887 per ounce at 3:00 am EDT, according to data from TradingView.
Last week, gold reached its highest price level since Jan. 8 at $1,889, marking a four-month high after gold prices dipped to $1,681 in early March. At the time of writing, spot gold is trading at $1,882, up around 0.1% over the past 24 hours.
Spot gold year-to-date chart. Source: TradingViewThe accelerated growth of the gold market came along with a major downturn in cryptocurrency markets that started on May 12. After topping above $2.5 trillion, the total crypto market capitalization started seeing consecutive slumps, eventually sinking below $1.3 trillion on Sunday, according to data from CoinMarketCap.
Advertisement
How Retail Crypto Traders Had A Shot At 350.68% Gains On BONK In 4 Days >>>
According to Bob Haberkorn, a senior market strategist at brokerage firm RJO Futures, growing gold prices could be attributed to a weaker dollar accompanied by lower United States Treasury yields. “If the data comes out substantially better than expected, that would probably be bearish for gold because the likelihood of a Fed taper will be sooner rather than later,” he said.
A number of financial analysts have drawn parallels between the trends in the crypto and gold markets, with JPMorgan experts suggesting last week that large institutional investors were dumping Bitcoin
BTC
$22,598
in favor of gold.
According to the bank, the new trend reversed a major bullish market driving Bitcoin’s price above $64,000 in mid-April. At the time of writing, Bitcoin is trading at $37,111, rebounding after touching $30,000 last Wednesday.