Gold reached its highest price level in early March. It hit the highest price level since January 8 at $1,889, marking a four-month high after gold prices dipped to $1,681.
It has been reported that the accelerated growth of the gold market came along with a major downturn in cryptocurrency markets that started on May 12.
However, according to data from CoinMarketCap, the total crypto market capitalization started seeing consecutive slumps, eventually sinking below $1.3 trillion on Sunday after topping above $2.5 trillion.
Spot gold surged around 4% since May 12 as crypto markets declined. https://t.co/K03oLeGeMp — Cointelegraph (@Cointelegraph) May 25, 2021
Bob Haberkorn, the Senior Market Strategist at brokerage firm RJO Futures, said that growing gold prices could be attributed to a weaker dollar accompanied by lower United States Treasury yields.
“If the data comes out substantially better than expected, that would probably be bearish for gold because the likelihood of a Fed taper will be sooner rather than later.”
The report said that a number of financial analysts have drawn parallels between the trends in the crypto and gold markets, with JPMorgan experts suggesting last week that large institutional investors were dumping Bitcoin in favor of gold.
Thus, according to the bank, the new trend reversed a major bullish market driving Bitcoin’s price above $64,000 in mid-April.