The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.
Why Is Gold Growing In Value?
Where does this gold rally come from? The answer is almost obvious. The thing is that the market is afraid of a new war in the Middle East. In response to what happened in Iran, the price of gold surged all the way up to 1611,80 dollars per ounce. It should be noted that this is the first time gold costs that much since March 2013.
It's also interesting to note that The New York Times saw another reason for this rally. The thing is, the recent CFTC report, which reveals weekly figures on big players' positions in commodity futures trading. As of January 7th, the speculative part of the market held a huge long position for gold - 383480 contracts. It should be noted that such positions were seen during the Brexit panic in 2016.
At the same time, international experts draw our attention to the SPN, which is the difference between long and short positions. So, according to these figures, the gold market in New York gave us 322 291 contracts, which is almost a new record.
What's Next?
In the past, such a high interest in gold was followed by a change in the mid-term trend. This may also mean that a new recession is coming.
Still, the simplest explanation for the current situation is that international investors are simply afraid a conflict between the United States and Iran. Anyway, precious metals always win during the times of economic and geopolitical shocks. With that being said, chances are investors prefer to reduce their exposure to risky asset and invest in safe-have assets instead until the situation stabilises. This is how safe-have assets work, and Bitcoin is just on its way to become one of them. So, if you have been investing in cryptocurrencies for quote a while, maybe you should consider investing in gold for the sake of diversifying your investment portfolio?a
