Gold ETFs rise: investors flow into precious metals while crypto is weakening

Gold ETFs rise: investors flow into precious metals while crypto is weakening

The impressive run of gold that exceeded the $ 3,000 mark last week has triggered demands for an even greater upward potential.

Jeffrey Gundlach, CEO of Doubleline Capital and widely known as the ‘Bond King’ for its in -depth expertise in fixed -interest markets, believes that the rally is far from exhausted, and expects that the precious metal could increase up to $ 4,000 in the perspective of investors in the perspective of investors dignity.

At a presentation for the macroeconomic from Outlook with the title ‘Not in My Neighborhood’, Gundlach emphasized the continued price movement of gold and other raw materials and pointed to a broader trend in which investors are looking for refuge in hard assets.

Supported cryptocurrencies, including Paxg and Xaut, have benefited directly from this historical increase in price and offer investors a digital opportunity to participate in the profits of the precious metal.

“I think gold will reach the $ 4,000. I am not sure whether this will happen this year, but I have the feeling that this is the measured movement that is expected by the long consolidation at around $ 1,800 for gold,” said Gundlach and emphasized his firm conviction in the future development of gold.

Krypto Outperformt supported by gold: an escape to safety?

Supported cryptocurrencies supported by gold have clearly outperformed the wider cryptocurrency market and show an escape to safety among investors who are looking for stability in the middle of volatile market conditions.

While Paxg and Xaut have risen by about 14% since the beginning of the year, Bitcoin has fallen by 11.4% in the same period, and the wider Coindesk20 index has given up by over 25%, which underlines the significant difference in performance.

gold ETFs exceeded the Bitcoin ETFs in relation to the assets managed.

central banks promote the rally: reversal of a shrinking trend

Gundlach optimistic forecast is based on changing strategies among global central banks, which increasingly increase their gold reserves and thus reverse an earlier phase in which their stocks have shrunk.

The total amount of gold kept worldwide, according to the data from Gundlach presented by the IMF, rose from a low of around 34 billion special education rights (SZR) to 40.9 billion SZR in 2010 and thus reaches the recent level between 1975 and 1980, which underlines again in gold as a reserve assets.

Special education rights are an international reserve assets that the IMF 1969 created and which is defined by a currency basket.

The article Gold ETFs rise: Investors flow into precious metals, while crypto weakens first appeared on Coinjournal.