Gold Reclaims Lead over Bitcoin as Fed Rate Hike Expectations Diminish

Gold has reclaimed its position as the stronger asset, outperforming Bitcoin for now. The U.S. jobs report showed payrolls unexpectedly fell by 23,000 in July, while Treasury yields and the dollar fell following the report. This weaker economic data pushed investors to expect that the Federal Reserve may keep rates unchanged in September.

The World Gold Council reported that central banks added a net 41 metric tons of gold in May, with 89% of reserve managers surveyed expecting global central-bank gold holdings to increase over the next year. UBS has projected gold could reach $5,000 an ounce in the first half of 2027.

The BTC/GOLD chart suggests Bitcoin may need more time before it can reverse its relative weakness. To recover, Bitcoin would first need to defend the 251 million region and reclaim the nearby 310 million area, followed by a move back above the blue midpoint.