Gold Rush! 🚀 What’s Next?

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By Jove, gold prices have actually soared past $3,300 per ounce! A historic high, what? As if the global markets weren’t already in a state of utter fluster.

This rather frantic surge, you see, is due to investors being in a blue funk over the economic jiggery-pokery. And, of course, those tariff policies of President Trump – a bit of a bind, really. Consequently, the chaps who know about these things (or at least, claim to) are issuing forecasts that are about as clear as mud on how this might influence Bitcoin. 🤔

What’s Driving Gold to Keep Breaking Records? (Good Heavens!)

At the time of tapping this out, gold has shot past $3,000, reaching a peak of $3,317. That’s a 25% increase since the start of the year. One might say things are getting a bit lively. 😅

Gold Chart

According to a report in The New York Times (a paper known for its accuracy, give or take), the global trade war is the main culprit behind gold’s continued gallop. Retaliatory tariffs among major economies are making the global economic outlook look as murky as a London fog. 🌫️

The US slapped on new tariffs, which, naturally, provoked countermeasures from China, the European Union, and Canada. The White House, not to be outdone, escalated the whole shebang further. A right old pickle, if you ask me.

“While general uncertainty and deteriorating economic vibes are improving interest in gold, most of gold’s price action is around the uncertainty related to tariffs,” said Helima Croft, head of global commodity strategy at RBC Capital Markets. A mouthful, what? 🗣️

In addition, there are growing concerns that tariffs could directly target imported gold. This has led to gold stockpiling within the United States. A case of better safe than sorry, I suppose. 🤷

Business Standard reported that major banks like JPMorgan Chase and HSBC have been moving large quantities of gold from London to New York. JPMorgan alone plans to transport $4 billion worth of gold this month. A rather impressive sum, even by today’s standards. 🏦

Besides the tariff war, macro analyst Zerohedge pointed to another factor—the Senate Budget Resolution for FY2025. This resolution allows the US to increase its budget deficit by up to $5.8 trillion over the next ten years. Zerohedge suggested that Gold is responding to this news. A deficit of that size could give anyone the jitters! 😬

The price spike reflects fears of currency devaluation due to ballooning deficits. A bit like watching a soufflé rise, only to collapse later. 📉

Goldman Sachs has also raised its year-end gold forecast to $3,700. The bank cited stronger-than-expected central bank demand and rising recession risks. Well, that’s cheerful. 😒

What Are Analysts Saying About Bitcoin as Gold Hits a New Peak?

While gold is basking in the limelight, Bitcoin, often called “digital gold,” has inspired mixed opinions. A bit like marmite, really – you either love it or loathe it. 🪙

Anthony Papillano, CEO of Professional Capital Management, told CNBC on April 15 that Bitcoin has dropped around 10% since the start of the year, while gold has gained 20%. However, both assets have risen approximately 35% over the past year. A case of swings and roundabouts, it seems. 🎢

He also outlined reasons why Bitcoin might soon rally like gold. These include the US government’s strategic Bitcoin reserve plans and the younger generation’s growing view of Bitcoin as part of a long-term investment strategy. Youth, eh? Always up to something. 🧑‍🎓

“History tells us Bitcoin’s returns will skyrocket past Gold in the coming months,” Papillano predicted. Let’s hope he’s right, eh? 🙏

Supporting this view, several analysts noted that Bitcoin often follows gold’s upward momentum with a lag of about 100 days, especially during increased global liquidity. Additionally, companies purchased more than 95,400 BTC in the first quarter of 2025, showing strong institutional demand. Not too shabby, eh? 😎

However, not everyone agrees. Economist Peter Schiff, a long-time Bitcoin critic, offered a contrasting view. He claimed the best trade right now is to sell all Bitcoin and other cryptocurrencies and invest entirely in gold and silver mining stocks. Well, you can’t please everyone, can you? 🤷‍♂️

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2025-04-16 14:45