Gold Rallies on Debt Concerns as Bitcoin Slumps on Regulatory Setback
The price of gold has rebounded in recent days due to concerns about government debt and fiscal stability, while Bitcoin faces pressure following a setback for regulatory clarity. Investment demand remains strong for gold, with gold exchange-traded funds (ETFs) pulling in $18 billion in August, according to the World Gold Council.
The People's Bank of China also purchased 20.2 metric tonnes of gold, its highest monthly buying volume since October 2023, but wholesale demand in China declined due to high prices. Institutional and central bank demand for gold remains robust, while physical demand is mixed.
Bitcoin, on the other hand, saw its price drop over 3% to $75,500 after the U.S. Senate failed to advance the Clarity Act, a setback that delayed regulatory clarity expected by the crypto industry. U.S. spot Bitcoin ETFs recorded net outflows of $450.4 million on September 15, reversing inflows from the previous day, but cumulative inflows remain close to $54.9 billion.