Gold appears to be recovering due to the falling US dollar. This could also have a positive effect on Bitcoin (BTC) in the medium term, since the two assets are correlated. In trading, the term pricing means that the price of an asset has exceeded its previous all-time high. Given that gold is now reaching a new high and its momentum is still strong, traders expect the asset to continue to rise until a clear resistance is established.
Weak US dollar good for gold and maybe bitcoin
According to Peter Schiff, the chairman of Schiff Gold and a well-known gold supporter, the weakening US dollar has caused gold to rise. Schiff said:
“The price of #Gold is now over $ 2,000 an ounce for the first time. For now, the vast majority of investors are unaware of the importance of the record low of the US dollar. But if such milestones as dominos fall, the severity of the Problem become even clearer. “
In recent months, the value of the US dollar has dropped significantly compared to other top reserve currencies. As a result, it helps investors look for alternative and safe investments, such as gold.
Schiff stressed that gold could continue to experience an explosive rally as the dollar depreciated. Schiff added:
“Nobody seems to be worried about the falling US dollar. It will likely remain so until the decline turns into a crash, which in my opinion will not start until the dollar index falls below 80. At the current rate of decline, it could this level will be broken before the end of the year, perhaps until election day. “