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Month High as Bitcoin Tests $80,000
Decrypt • • business
Key Points:
- Gold prices reached a three-month high, hitting $4,696.18 an ounce, driven by a weaker dollar and falling Treasury yields, extending its August rally.
- Bitcoin also surged alongside gold, surpassing $80,000 for the first time since mid-May, peaking at $81,237 before easing.
- The rallies followed the U.S. Treasury Department's expansion of bond buybacks, which caused gold prices to jump 3% and contributed to a decline in the dollar and long-term yields.
- Global gold-backed ETFs saw $3 billion in net inflows in July, reversing two months of outflows, with European funds leading the recovery and total holdings rising to 4,068 tons.
- Analysts note that both gold and Bitcoin benefit from a weaker dollar but serve different investor purposes: gold as a traditional safe haven amid uncertainty and Bitcoin as an alternative to fiat currencies.
