Today, the price of gold reached a new record of USD 2,008 and the asset is now in the price discovery phase.
The precious metal appears to be recovering due to the decline in the US dollar and this could also positively affect Bitcoin (BTC) in the medium term due to the correlation between the two assets.
Bitcoin vs Gold price movements
In trading, the term price discovery refers to when the price of an asset exceeds its previous historical peak. As gold is now looking for a new peak, and its momentum remains strong, traders expect the asset to continue to appreciate until a clear level of resistance is established.
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A weak dollar is good for gold, and possibly for Bitcoin
According to Peter Schiff, president of SchiffGold and a well-known gold advocate, the weakening of the dollar has pushed gold upwards. Schiff said:
„The price of gold is now above USD 2,000 per ounce for the first time. For now, the importance of the dollar’s historical low is lost on the vast majority of investors. But as the $1,000 milestones fall like dominoes, the severity of the problem will become more apparent.
In recent months, the value of the U.S. dollar has fallen substantially compared to other major reserve currencies. As a result, this boosted alternative and secure assets, including gold.
The monthly price chart of gold
As reported by Cointelegraph, industry executives believe that a weakened dollar could also strengthen the trend of Bitcoin prices. OKEx CEO Jay Hao, trader Scott Melker and researcher Mark Wilcox said the falling dollar benefited Bitcoin.
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