Gold Soars on Chinese Demand as Bitcoin Fails to Keep Up with S&P 500

Gold prices reached a six-week high on Wednesday due to strong demand from China. According to Bloomberg, Chinese gold-backed exchange-traded funds (ETFs) saw inflows for 14 consecutive days. In contrast, Bitcoin remained stagnant, failing to keep pace with the S&P 500 index's record highs.

The S&P 500 continued its upward trend, reaching a new all-time high of 7,793. Meanwhile, gold prices surged 2.8% to $4,213 per ounce, its highest level since June 22.

China's central bank has been actively purchasing gold, with the People's Bank of China (PBoC) buying 82 tonnes over the past 20 months. This, combined with increasing geopolitical and economic uncertainties, is driving demand for gold ETFs.

However, Bitcoin failed to benefit from the broader market optimism. Analyst Rekt Capital noted that as long as the price remains below $64,000, it will continue to form lower highs and eventually break down into the $58,000-$66,000 range.