Gold and Bitcoin Surge as Dollar Weakens and Yields Fall

The price of gold and bitcoin both rose sharply last week, reaching three-month highs for gold and exceeding $80,000 for bitcoin. The move was attributed to a weaker dollar and falling long-term U.S. Treasury yields, which drove up the value of both assets.

A recent announcement by the U.S. Treasury that it would expand bond purchases contributed to the decline in yields, with the World Gold Council reporting that gold prices jumped 3 percent after the news. The council also noted that gold is often seen as a safe-haven asset during times of economic and geopolitical uncertainty.

Fund flows also supported gold's rise, with the WGC reporting net inflows of $3.0 billion in July for spot gold exchange-traded funds. Holdings rose 23 tonnes to 4,068 tonnes, and assets under management increased 1 percent to $530.0 billion.