Gold Soars on Chinese Demand as Bitcoin Lags Behind Record-Breaking Stocks
Gold prices surged to six-week highs on Wednesday, reaching $4,213 per ounce, as Chinese demand for the precious metal drove the increase. This comes as Bitcoin struggled to keep pace with the broader market, remaining stuck at $64,000 despite a record high for the S&P 500 index.
Data from Bloomberg showed that gold-backed exchange-traded funds (ETFs) in China saw 14 consecutive days of inflows, sparking renewed interest in the precious metal. The World Gold Council reported that these products experienced their worst month of outflows on record in June, but have since seen a significant rebound.
Analysts attribute this surge to growing geopolitical and economic uncertainties, as well as continued purchases by China's central bank. Institutional investor participation in Chinese gold ETFs has also increased, supporting demand for these products.