Gold Drops To A Two-Month Low As Investors Turn To Bitcoin After Trump’s Victory, But This Economist Remains Confident That ‘Gold Will Surge’
Even after the U.S. headline and core consumer price inflation rose in the month of October, the Gold spot (NASDAQ:XAU) prices fell to a two-month low and have been hovering in the same range. Key ETFs that track gold, have also taken a beating.
This comes amid a rise in Bitcoin‘s (CRYPTO: BTC) prices which is currently trading at above $90,000 a coin after President-elect Donald Trump‘s victory.
Also read: Peter Schiff: US Bitcoin Reserve Could ‘Destroy Dollar,’ Predicts It’s ‘Highly Unlikely’ To Happen
What Happened: Gold spot prices were trading at $2,547.42 per ounce, as of 6:06 a.m. EST, which is the lowest since Sept. 11. Even though bullion is used to hedge inflation the prices of gold hovered around the two-month low levels despite the increase in the U.S. headline and core CPI data. The prices declined nearly 8% from the record high that it scaled on Oct. 31. The surge in the U.S. dollar also weighed on the precious yellow metal.
Prominent Gold ETFs have also declined as the gold spot prices have fallen. According to Benzinga Pro, Franklin Responsibility Sourced Gold ETF (ACRA: FGDL) declined by 1.19%, whereas the SPDR Gold MiniShares Trust (ACRA: GLDM) was down by 2.5%. Also, iShares Gold Trust Micro Shares (ACRA: IAUM) declined by 2.57% as of 6:06 a.m. EST.
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