As gold and silver reach record highs amid geopolitical tensions and market uncertainty, attention is turning to Bitcoin as a potential competitor in the commodities rally.
Gold's meteoric rise driven by global factors
Gold prices surged to all-time highs, hitting $2,450 an ounce on Monday. This surge is fueled by geopolitical tensions, anticipation of an accommodative stance from the Federal Reserve and sustained demand from central banks.
Silver Bullish Momentum and Future Outlook
Silver surged to an 11-year high above $30 an ounce, supported by its safe-haven status, a weakening U.S. dollar and rising industrial demand. Analysts forecast further gains, with potential resistance at $35.
The commodities market is seeing a strong recovery, with precious metals like gold and silver recently hitting new record highs. Gold is taking all the attention in the global financial market, reaching a new all-time high against the US dollar. As a result, market analysts are closely monitoring Digital Gold, aka Bitcoin.
Earlier on Monday, the price of gold climbed to $2,450 an ounce, fueled by ongoing geopolitical developments in Iran and the likelihood of a dovish Fed interest rate decision. . Another factor driving gold prices is sustained demand from central banks, which has contributed to a 30% increase in gold prices this year.
Silver (SILVER) remained in the spotlight Monday as it hit an 11-year high above the psychologically important threshold of $30. This rise is attributed to its safe-haven properties, the weakening US dollar and its industrial utility.
Investors are driving up the prices of silver, as well as other precious metals, looking for assets to protect against current geopolitical uncertainties.
Going forward, silver is expected to benefit from increased industrial demand. The Silver Institute's World Silver Survey report forecasts a 9% increase in industrial demand this year, fueled by the growing use of silver in renewable energy applications.
Longer term, investors should watch for a possible move towards the $35 mark. This area could pose resistance due to a key multi-year horizontal line from the notable highs of 2011 and 2012. A decisive break above this level could lead to a retest of the established all-time high of $47.71 in April 2011.
Bitcoin’s potential to bridge the gap
Amid the commodity surge, Bitcoin is lagging behind, still far from silver's $1.8 trillion valuation. Analysts are speculating on Bitcoin's potential, citing historical trends of doubling after new highs and predicting a potential upward trend towards the end of the second quarter.
Read also: Decide which is best among gold, silver and Bitcoin: Robert Kiyosaki speaks out
Digital Galaxy 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 the potential to rise towards the end of the second quarter.
Traditional markets are hitting new all-time highs, and gold and silver are performing exceptionally well. It is clear that it has become crucial to provide protection against inflation.
Bitcoin has become a key player. Arguments about its legitimacy are no longer valid, as it is now fully regulated and tradable on Wall Street, the analyst says.
Serious question: why doesn't retail see #Bitcoin NOW?
Traditional markets are trading at new all-time highs. Gold and silver are performing very well. It should now be clear to everyone that they need some inflation protection as soon as possible. Traditional markets, gold and silver… pic.twitter.com/M6Z20p5vOL
– sunny decree (@sunnydecree) May 19, 2024