Gold and Bitcoin Prices Climb as Debasement Trade Picks Up, Says JPMorgan
Analysts at JPMorgan have identified the “debasement trade” as a key factor driving the rising prices of gold and Bitcoin.
They link gold’s surge, now around $2,700 per ounce, to inflation concerns, geopolitical instability, and declining trust in fiat currencies. Both institutional and retail investors increasingly view these assets as safe havens amid global economic uncertainty. The analysts noted that the U.S. dollar’s share in global reserves has fallen to 57%, suggesting a shift in investor confidence.
They also observed that speculative institutional investors, particularly hedge funds, perceive gold and Bitcoin as beneficiaries of this trade, while potential political events, such as a Donald Trump victory in 2024, could further elevate geopolitical tensions and influence fiscal policies, impacting these asset prices.
Clever Robot News Desk 6th October 2024
