Gold price reaches all-time highs this week and coupled it more with bitcoin

Gold broke down this week the important psychological barrier of 2,000 dollars the ounce, with an escalation that began on Tuesday, August 4, when it closed in 2013 dollars. The price of gold in the spot market reached a historical maximum of USD 2.081 on the night of Thursday 7, according to goldprice.org in order to finally drop this Friday, to $ 2.035.

The silver, with other precious metals also recorded a day of record high and rose by USD 30 per ounce in the evening of this Thursday, to withdraw this Friday at USD 28,11 ounce, according to goldprice.org.

As one of the reasons for the rise record of the gold, it could be mentioned that this week was announced the unemployment rate of the united States, 11% for June of this year. Although this figure represents an improvement compared to the maximum recorded for April of 14.7%, it is considered an index quite high, since the average over the last 70 years has been 5.75%, according to the Bureau of Employment Statistics.

The statistic is in addition to the statements from the Fed last week that reflected a panorama hardly encouraging for the economy of the united States, in the midst of the upsurge of cases of Covid 19 in that country and in the world. Trade tensions between China and the united States, one of the largest importers of gold, they were also able to influence the rally in the precious metal.

The price of bitcoin (blue) shows a strong correlation in the last week with the price of gold (brown). In red the dollar index (Dollar Currency Index, USDX). Source: TradingView.com

This Friday, bitcoin shows a decline to $ 11.468 in the last 24 hours. As can be seen in the chart above, although the dollar index (in red) against a basket of currencies fiat of six allied countries, improved in the last few days, even shows a depreciation of 7% compared to its value may.

On the other hand, it is very noticeable in the chart above, the strong correlation between the prices of bitcoin and gold in the last days, that comes to 68.7 per cent in the last month. This reinforces the thesis that bitcoin is perceived also, along with the gold, as an asset of refuge.

Last April, when the correlation between bitcoin and gold reached 0.6 or 60%, Breaking News published an analysis of this coincidence in the evolution of prices.

In a recent report from Fidelity Digital Assets, it is claimed that Bitcoin is a “store of value aspirational” and “an insurance policy” in times of growing financial uncertainty. The report explores the characteristics that position Bitcoin to play that role in the future, and consider whether it is effectively used today as a reserve of value.

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