Gold Surges to Six-Week High as China Demand Drives Prices Higher

Gold surged to a six-week high on August 5 after Chinese investors continued their streak of buying gold-backed exchange-traded funds for 14 straight days, driving prices up 2.8% to $4,213 per ounce.

The World Gold Council attributed the recovery in demand to geopolitical and economic uncertainty keeping retail appetite alive, institutional participation growing, and the People's Bank of China purchasing 82 tonnes of gold over the past 20 months.

Meanwhile, Bitcoin held steady near $64,000 despite the overall positive tone in global markets, with the S&P 500 reaching an all-time high of 7,793. Analysts pointed to four key hurdles that need to be overcome before a lasting BTC recovery can develop: sustained inflows into US spot Bitcoin ETFs, cooling US bond yields, no Federal Reserve rate hikes, and a return of the Coinbase Premium to positive territory.