Gold Smashes Through $4,200 As Bitcoin Stuck At $112,000: What’s Driving The Underperformance?
Gold as measured by the SPDR Gold Trust (NYSE:GLD) smashed through $4,200 per ounce on Wednesday after Fed Chair Jerome Powell hinted at fresh rate cuts, while Bitcoin (CRYPTO: BTC) continues to languish around $112,000.
Gold Extends Historic Rally On Policy And Geopolitics
Gold has gained more than 25% since mid-August, aiming for its ninth straight weekly green close.
Fed Chair Powell told the National Association for Business Economics on Tuesday that slowing U.S. hiring poses an increasing threat to growth, a remark traders interpreted as support for two more cuts this year.
Falling real yields and geopolitical strains have amplified the move.
President Donald Trump accused China of “economically hostile” behavior after it halted soybean imports and warned of possible retaliation, including a cooking-oil embargo.
Beijing responded with new sanctions against five U.S. units of South Korea’s Hanwha Ocean.
The prolonged U.S. government shutdown has added to the uncertainty, fueling further demand for safe-haven assets.
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