The weakening of the United States dollar and the fall in the long-term return on the United States national debt contributed to a parallel increase in gold and bitcoin on Tuesday. Cash gold rose once to $4696.18 per ounce, the highest level since mid-May, while bitcoin rose for the first time since mid-May by $80 million, touching $81,237 in the disk, and then repulsing in part.

The dollar goes back and goes up.

This round of increase took place last week after the United States Treasury Department expanded its purchases of national debt. The market's judgement of liquidity and financial prospects has changed, and the return on the dollar versus long-term United States debt has subsequently fallen. According to the World Gold Association, the price of gold rose by about 3 per cent at one time after the news was released.

Gold is usually bought when the economic and geographical situation is under pressure, while bitcoin has been viewed more recently by some investors as an alternative asset beyond the French currency. This parallelity suggests that the market is reconfiguring the relevant slots for hard assets.

EF in July

Financial flows of gold-invested products have also improved as a result of price recovery. World Gold Association data show that global gold-supported ETF recorded a net inflow of $3 billion in July, reversing two consecutive months of net outflows.

  • Warehousing increased by 23 tons to 4068 tons
  • Increase in the size of managed assets to $53 billion
  • European and Asian funds are at the top of the flow.

According to the Agency, the price of gold fell for four consecutive months prior to the end of July, with a cumulative increase of about 2 per cent that month. The end of the United States-Iran ceasefire in August, as well as the expansion of the United States bond buy-back, further heightened market concerns about the geo-financial situation.

The interest rate hike in September is expected to cool down significantly.

According to the World Gold Association, the market has largely ruled out the Fed ' s interest rate hike in September. Recent weak economic data alleviate concerns about further tightening of policies and support gold.

Nansen Senior Research Analyst Jake Kennis stated to Decrypt that bitcoin and gold were rising at a time when the United States dollar was weakening, in line with the hedge transaction logic of market depreciation against currency and fiscal credit constraints. He also noted, however, that the linkage, which looked like a market signal, was not sufficient to demonstrate alone that the investor had turned to abandoning the dollar.