Gold Surges Past $1 Trillion While Bitcoin Stalls
Gold prices skyrocketed by 4.4% on August 2, reaching an intraday high of $4,259 per ounce and adding approximately $1.3 trillion in market value. This surge is equivalent to almost the entire market capitalization of Bitcoin.
The rally was driven by a combination of falling Treasury yields, a softer US dollar, and changing expectations surrounding the Iran conflict. Lower inflation expectations weakened the case for another Federal Reserve interest rate increase, making non-yielding assets such as gold relatively more attractive.
Despite improving macroeconomic conditions, Bitcoin remains near $64,000, with a modest 1% gain over 24 hours. Ethereum hovered near $1,890, XRP traded around $1.06, and Solana remained close to $74.
The divergence between gold and Bitcoin raises questions about the cryptocurrency's recovery potential. Until crypto attracts its own powerful catalyst, gold may continue winning the battle for global safe-haven demand.