(Kitco News) With bitcoin still holding investors’ attention this year, is gold falling behind? Many analysts say that gold’s price action is being hurt by all the money going into cryptos. But how high would gold really be if not for bitcoin? Here’s a look at our top three stories from this week:
3. Bloomberg Intelligence released its own analysis, stating that gold would be much closer to $2,300 right now if it were not for bitcoin. In order to get to this number, Bloomberg Intelligence looked at copper, the 10-year Treasury yields, and gold. “Gold would be closer to $2,300 an ounce instead of about $1,780, to match the 10-year relationship between the copper/gold ratio and bonds,” the report said.
2. Russia has accelerated its de-dollarization policy, choosing to settle exports in euro over the U.S. dollar. For the first time ever the share of Russian exports sold in U.S. dollars has fallen below 50% in the fourth quarter of last year. And the euro is the one benefiting from this shift, with the share of euro transactions rising, especially when it comes to Russian’s trade with China.
1. As gold continues its attempt to breach the $1,800 level, a former JP Morgan managing director told Kitco News that the precious metal could see a big move up soon. Gold will be around $2,200 this year because inflation is already here and the world is sitting on an economic cliff. This makes assets like gold, silver, and bitcoin very popular with investors, according to the former JP Morgan managing director Jon Deane.
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