Gold Surges on China Demand, Leaving Bitcoin Lagging Behind

Gold prices have surged to six-week highs due to rising demand from China. The precious metal hit $4,213 per ounce on Wednesday, its highest level since June 22. According to Bloomberg, Chinese gold-backed exchange-traded funds (ETFs) saw 14 consecutive days of inflows.

This surge in demand comes after a poor month for ETFs in June, where outflows reached an all-time high. However, year-to-date inflows have still exceeded $5.6 billion, with the World Gold Council reporting this as the second-best first half performance on record.

The People's Bank of China (PBoC) has also been a key factor in supporting gold prices through its continued purchases. Analysts point to growing geopolitical and economic uncertainties as driving demand for safe-haven assets like gold.