Crypto Markets Tumble Amid Geopolitical Tensions, Gold Remains a Safe Haven

Gold Gains Momentum Amid Weaker US Dollar and Supportive Yields

This weekend saw a significant decline in cryptocurrency values, losing over 5% to $2.3 trillion, while gold and silver showed resilience amidst Middle East tensions. Investors remain optimistic about gold, viewing geopolitical risks as potential supports for its value.

Over the weekend, the cryptocurrency market experienced a sharp decline, losing over 5% of its value and dropping to $2.3 trillion. This downturn occurred alongside a modest decrease in precious metals, which were less affected by the market shifts. Amid geopolitical tensions in the Middle East, gold saw a 1.18% drop over the last day, yet it managed to rise against the U.S. dollar over the previous week. Recent surveys also indicate a prevailing optimistic sentiment among investors regarding gold’s prospects.

Gold Gains Momentum Amid Weaker US Dollar and Supportive Yields

As tensions heightened on Saturday with Iran’s drone airstrike against Israel, the crypto market took a significant hit, erasing $330 billion in value. Bitcoin, for instance, fell by 6.9% over the week, with analysts linking the crypto plunge directly to the Iran-Israel conflict. U.S. equities are also expected to feel the effects of this turmoil come Monday. In contrast, precious metals like gold and silver experienced only minor setbacks.

Gold ended the week up by 0.6% despite the recent daily decline, while silver, although down over 2% in the last day, recorded a 1.36% increase over the week. Over the past six months, both metals have seen gains exceeding 21%, demonstrating their resilience compared to the more volatile crypto market, which, despite recent losses, has surged 124% in the same period. The latest Kitco News Weekly Gold Survey confirms a bullish outlook among Wall Street and Main Street investors, with many citing “geopolitical risks” as a potential boost rather than a barrier to the metal’s value.

Frank McGhee of Alliance Financial discussed the market dynamics with Kitco the day before the airstrike, saying, “The best component that I can see now is that the market is finally paying attention to geopolitical, and as the threat of an Iranian attack on Israel looms, the market has finally just decided to take notice.” Amidst the crypto market’s downturn on Saturday, data shows a trend of investors turning to U.S. dollar stablecoins and gold-backed tokens for safety. Notably, Tether’s XAUT and Paxos’s PAXG both saw significant increases.

PAXG, in particular, jumped to $2,855 per coin on Saturday, drawing significant interest after the drone attack was reported at 2 p.m. Eastern Time. Although the premium on PAXG has since decreased, it still remains about $100 above the current spot price of gold. Meanwhile, XAUT’s premium was less substantial but maintained a $25 increase above the gold spot price as of Sunday afternoon.

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Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

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