Gold Grinds On As Bitcoin Eyes New Highs

A medium-term bottom in gold at around $4000 is likely, but its price may not move back to the all-time high. A sideways grind has been playing out, which was firmly on the radar. Historically, periods of gold weakness driven by expectations of higher interest rates have presented attractive long-term buying opportunities.

When 10-year Treasuries yielded 5.25%, the gold price was less than $400 per ounce, a stark contrast to its current value. This perspective highlights the long-term viability of fiat currency and gold's role as a store of value.

A breach of the bottom rising trendline on the weekly chart would likely trigger an avalanche of selling down toward the 3600 level, clearing lingering bullish sentiment.