Gold Continues Upward Momentum in New Week, Spot Gold Price Surpasses $3,100 per Ounce
Gold continued its upward momentum in the new week, with the spot gold price breaking through $3,100 per ounce earlier on Monday, once again setting a historical high.
Some analysts pointed out that last week’s inflation data, which was slightly higher than expected, may contribute to creating a “perfect storm” that allows gold prices to continue reaching new highs. Peter Grant, Vice President and Senior Metals Strategist at precious metals dealer Zaner Metals, believes that the fundamentals of gold are driving the market. In an interview with Reuters, he stated:
Economist James Rickards commented that the reasons for this surge are the same as before, noting that “driving factors include: central bank purchases, accumulation by BRICS nations, stable mineral supply, safety transfer (excluding long-term bonds), diversification, and its role as a ‘universal hedge asset’.” Rickards also mentioned a variable that has yet to emerge but could lead to further surges in gold prices, which is the more active participation of retail investors, who are currently still on the sidelines.
Peter Schiff Criticizes Bitcoin Again
As gold continues to rise, Bitcoin, which some view as “digital gold,” is performing poorly, having fallen from its historical high of about $109,500 on the day of U.S. President Donald Trump’s inauguration to around $80,000, representing a decline of over 25% in the past two months.
Notable gold advocate and Bitcoin skeptic Peter Schiff has recently continued to mention the rise of gold and its hedging properties while criticizing Bitcoin. Earlier today, he wrote on social media platform X:
Schiff also referred to the status of his personal Bitcoin strategic reserve. According to a previous report by Zombit, this Bitcoin strategic reserve plan was created by Schiff to demonstrate that the U.S. Bitcoin strategic reserve is a misguided decision. He invited fans to contribute to the reserve and emphasized that he would not sell any donated Bitcoin.
Today, Schiff stated that so far, his Bitcoin strategic reserve has “lost a tremendous amount” on Bitcoin obtained without cost, which proves that holding Bitcoin reserves is not advisable. He added that he has placed the Bitcoin reserves in a hardware wallet to allow the public to observe the losses, hoping that these significant losses will deter the U.S. government from considering Bitcoin as part of the national reserve.