World gold prices skyrocket, bitcoin hits all-time high

Reasons behind gold price hitting two-week high

In today's trading session (May 22), spot gold prices increased by 0.8% to $3,340.53/ounce, after reaching their highest level since May 9. US gold futures prices increased by 0.9% to $3,341.90/ounce.

Gold prices rose to a two-week high as money poured into safe-haven assets, with investors seeing worrying signs about the US debt and falling demand for US government bonds.

The US dollar index hovered near a two-week low, making gold - which is priced in dollars - more attractive to international investors.

"The falling US dollar has reversed the upward trend of gold prices, along with the risk of prolonged stagflation in the US economy ," said Kelvin Wong, senior market analyst at OANDA in the Asia-Pacific region.

The US House Rules Committee approved a comprehensive tax cut and spending bill proposed by former President Donald Trump, clearing the way for a vote in the full House.

The US Treasury Department reported weak demand for its $16 billion 20-year bond auction on Wednesday, adding to pressure on the dollar and Wall Street after Moody's downgraded the US's AAA credit rating last week.

Investors are also closely watching the fifth round of nuclear talks between the US and Iran, scheduled to take place on May 23 in Rome, according to information from the Foreign Minister of Oman.

Gold has long been considered an effective safe-haven investment channel in times of economic and geopolitical instability, especially in a low-interest rate environment.

Spot silver rose 0.5% to $33.54 an ounce. Platinum rose 0.1% to $1,077.33. Palladium fell 0.6% to $1,031.46.

Bitcoin surpasses historical peak

Contrary to the cautious sentiment in the traditional market, bitcoin continued to rise strongly and surpassed its historical peak thanks to the return of risk-taking sentiment, especially after the US-China trade tensions cooled down and Moody's downgraded the US credit rating, causing many investors to seek alternatives to the USD.

The world's largest cryptocurrency hit $109,760.08, surpassing its highest level recorded in January. As of this morning, bitcoin's price increased by 1.1%, trading around $108,117.

"As bitcoin price surpasses January high, up 50% from April low, bitcoin enters favorable territory," said Antoni Trenchev, co-founder of digital asset trading platform Nexo.

Bitcoin price hits new high.

“We are in the fourth year of the Bitcoin price cycle, the post-halving period. Historically, this is a period when Bitcoin usually has a strong rally. Despite the risk of volatility and macro instability, the target of $150,000 by 2025 is still very feasible,” Mr. Trenchev added.

Bitcoin’s price moves are often tied to moves in tech stocks and riskier assets. The tech-heavy Nasdaq (.IXIC) is up 30% from its early April low. Bitcoin’s rally has been bolstered by persistent weakness in the U.S. dollar.

The cryptocurrency market has also seen increased participation from traditional financial institutions. Jamie Dimon, CEO of JPMorgan and a long-time crypto skeptic, recently announced that the bank will allow customers to buy Bitcoin. Cryptocurrency exchange Coinbase (COIN.O) was also officially added to the S&P 500 index earlier this month.

Still, Coinbase is facing legal trouble as the US Department of Justice opens an investigation into a data breach at the company.

In contrast to Bitcoin, Ether - the second largest cryptocurrency - fell slightly by 0.5% to $2,513.

(According to TPO)

Source: https://baoyenbai.com.vn/12/350615/Gia-vang-the-gioi-tang-vot-bitcoin-cham-moc-cao-nhat-moi-thoi-dai.aspx