Gold Rises Amid US Debt Concerns, Surpasses Bitcoin
A Bank of America strategist has become bullish on gold as he expects the US debt to continue rising, leading to a weakening dollar and bond market collapse. Michael Hartnett predicts that investors should bet on gold due to its 'optimal solution' in this scenario.
Hartnett's forecast comes after the bank trimmed its 2026 target for gold from $5,093 to $4,360 earlier this month, citing a potential Federal Reserve rate hike. However, his current view sees gold outperforming Bitcoin as the XAU/BTC reading has hit a 10-week high.
The XAU/BTC ratio has surged by 15% from its low of $0.0606 on July 21 to its current price of $0.069. In contrast, Bitcoin remains stuck between $62,000 and $65,000, while gold has gained 11.7% since hitting a 2026 low of $3,942 on June 30.