There’s a strong rally in the commodities market with precious metals like Gold and Silver hitting new record highs recently. Gold is grabbing all the limelight in the global financial market, hitting a new all-time high against the USD. As a result, market analysts are keeping a close watch on Digital Gold aka Bitcoin.
Earlier today on Monday, the Gold price rallied to $2,450 per ounce fueled by the ongoing geopolitical developments in Iran and the likelihood of a dovish move by the Fed on interest rates. Another factor driving gold prices is the sustained demand from central banks, contributing to a 30% increase in gold prices this year.
Silver Gives An 11-Year Breakout
Silver (SILVER) remains in the spotlight on Monday as it surged to an 11-year peak surpassing the significant psychological threshold of $30. This rise is attributed to its safe-haven properties, the weakening U.S. dollar, and its industrial utility.
Investors are driving up silver prices, along with other precious metals, seeking assets to hedge against ongoing geopolitical uncertainties.
Looking ahead, silver stands to gain from increasing industrial demand. The Silver Institute’s World Silver Survey report projected a 9% rise in industrial demand this year, fueled by the growing use of silver in renewable energy applications.
In the longer term, investors should monitor a potential move towards the $35 mark. This area may pose resistance due to a key multi-year horizontal line from notable swing highs in 2011 and 2012. A decisive breakout above this level could lead to a retest of the record high at $47.71 set in April 2011.
Will Bitcoin (BTC) Catch Up soon?
Amid the recent silver price rally, the commodity has widened its gap with Bitcoin. Bitcoin is still $500 billion away in order to catch up to Silver’s $1.8 trillion valuation and become the eighth largest global commodity. For the flipping to happen, the Bitcoin price should cross $93,000 provided silver remains stable by that time.
Bitcoin analyst Dylan LeClair previously highlighted that Bitcoin often doubles within months of hitting new highs, especially around halving events.
Galaxy Digital founder and CEO Mike Novogratz predicts that Bitcoin will remain in a “consolidation phase” between $55,000 and $75,000 over the next month, with potential for an increase towards the end of the second quarter.
Traditional markets are hitting new all-time highs, and gold and silver are performing exceptionally well. It’s evident that securing inflation protection has become crucial.
Bitcoin has emerged as a key player. Arguments about its legitimacy are no longer valid, as it is now fully regulated and tradable on Wall Street, says analyst.
Serious Question: Why is retail not seeing #Bitcoin now?
Traditional markets are trading at new all-time highs. Gold and silver are performing very well. It should be clear to everyone by now that they need some inflation protection ASAP. Traditional markets, gold, and silver… pic.twitter.com/M6Z20p5vOL
— sunnydecree (@sunnydecree) May 19, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: