As bitcoin climbed beyond its previous 2021 peak, the value of an ounce of pure gold similarly hit a lifetime high on March 5. The globally acknowledged safe haven asset soared to $2,140 per ounce on Tuesday, marking a 4.97% increase against the U.S. dollar over the preceding week.
Precious Metal Peaks — Gold Surpasses $2,140, Marking Historic Price High
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Price of Gold Climbs to Unprecedented U.S. Dollar Value
Similar to bitcoin (BTC), the value of gold achieved a new zenith on March 5, 2024, with a troy ounce of .999 fine gold reaching $2,140 per unit on Tuesday. The market price for a single spot ounce, equivalent to 28.34 grams of gold, climbed by 4.97% in five days. Over the past six months, gold’s value has risen over 11% against the U.S. dollar.
However, gold’s price movements are not as dramatic as bitcoin’s ( BTC), with its increases being modest in comparison to BTC’s recent surge. Despite BTC experiencing a 10% decrease after reaching its all-time high (ATH), its value is still up 48% year-to-date, in stark contrast to gold’s more modest gain of 3.2%. The rise in gold’s price has delighted advocates of the precious metal, such as Peter Schiff.
“When gold rises to a record high, it sends a signal to central banks that monetary policy is too loose,” Schiff said on Tuesday. “Not only will [Jerome] Powell ignore this signal and not tighten policy, but tomorrow he will tell Congress that rate cuts are coming. So gold and inflation are headed much higher.”
#Gold just traded at a new all-time record high above $2,140. I wonder if anyone on #CNBC will notice. This record won’t last long. Gold has a long way to rise and gold mining stocks have an even longer way to rise to catch up. This is just the beginning of a huge bull market.
— Peter Schiff (@PeterSchiff) March 5, 2024
The previous peak for gold in USD terms, apart from today, occurred on Dec. 3, 2023, with an ounce hitting $2,100 per unit. As of the current date, gold has appreciated over 65% against the U.S. dollar over the last five years.
In contrast, BTC has seen a 1,496% increase in the same five-year period against the greenback. Despite these gains, gold boasts a significantly larger market capitalization, towering at $14.35 trillion, in comparison to BTC’s $1.23 trillion.
Additionally, Jim Bianco, a macro investment analyst and researcher, discussed gold and its related exchange-traded funds (ETFs) on Tuesday. He presented a chart illustrating the spot price of gold alongside the cumulative flows into gold ETFs, noting, “Spot gold climbs to record. The price is orange, [and] cumulative flows (all 10 gold ETFs) is blue. This is the biggest divergence in the 20 years of trading. The demand from non-ETFs is greater than ETF selling.”
Bianco added that all ten gold ETFs boast $85 billion in assets under management, with $55 billion in SPDR Gold Shares (GLD) and $26 billion in Ishares Gold Trust (IAU). He stressed the chart he provided offered a superior measure, tallying the ounces collectively maintained by all these ETFs. The researcher said that the ETF’s holdings reached a peak of 111 million ounces in 2020 and currently stand at approximately 82.3 million ounces. “ETFs are unloading as price rises,” Bianco concluded.
“This is interesting … rare,” Bloomberg ETF analyst Eric Balchunas replied to Bianco’s X post. “Not totally sure what to make of it, may be bitcoin ETF effect (stealing business) but not totally sold on that,” Balchunas added.
What do you think about the price of gold rising to new heights the same day bitcoin jumped to its lifetime price high? Share your thoughts and opinions about this subject in the comments section below.
