Gold Hits Six-Week Highs as Bitcoin Ignores S&P 500 Record

Gold prices surged to their highest levels in six weeks as investors sought safe-haven assets amidst growing geopolitical and economic uncertainties. The precious metal gained 2.8% on Wednesday, reaching $4,213 per ounce. According to Bloomberg, Chinese appetite for gold drove the upside, with 14 consecutive days of inflows for domestic gold-backed exchange-traded funds (ETFs).

China's central bank has been actively purchasing gold, accumulating 82 tonnes over the past 20 months. Institutional investor participation in these products has also increased, supporting demand. The World Gold Council reported that Chinese ETFs saw their worst month of outflows on record in June.

In contrast to the rally in gold and US stocks, Bitcoin's price remained stagnant at $64,000. Analysts point to several factors contributing to the cryptocurrency's lackluster performance, including sustained inflows into US spot Bitcoin ETFs, cooling US bond yields, and the absence of expected interest-rate hikes by the Federal Reserve.

Rekt Capital, a trader and analyst, noted that as long as Bitcoin's price remains wedged at $64,000, it will continue to form lower highs and eventually break down into the $58,000-$66,000 range. CryptoQuant also highlighted three prerequisites for a durable BTC price rebound: sustained inflows to US spot Bitcoin ETFs, cooling US bond yields, and the absence of expected interest-rate hikes.