Gold Surges to Record $5,400 as Powell Dismisses Market Signals; Bitcoin Stagnant
Precious metals rally after Fed chair says gold bull market sends no macro message
Powell's statement that he takes "no macro signal from the raging bull market in precious metals" was interpreted by gold investors as a green light to continue accumulating. Meanwhile, Bitcoin remained subdued, failing to capture the same safe-haven flows.
The divergence between gold and crypto has puzzled some analysts who expected both assets to benefit from monetary policy uncertainty.
Analysis
Why This Matters
Gold's record run reflects deep concerns about currency debasement and economic stability that aren't being expressed in equity markets. The Bitcoin divergence challenges narratives about crypto as "digital gold."
Background
Gold has been on a multi-year rally driven by central bank buying, geopolitical uncertainty, and inflation fears. Bitcoin has struggled to maintain momentum despite similar macroeconomic drivers.
Key Perspectives
Gold bulls see Powell's dismissiveness as central bank hubris; crypto advocates argue Bitcoin's time will come as younger investors inherit wealth.
What to Watch
Whether the gold-Bitcoin divergence persists and if institutional investors begin reallocating from crypto to precious metals.