The crisis in France and the United Kingdom and the fears of contagion in the rest of Europe, combined with the economic crisis and geopolitical tensions have triggered a race for refuge assets, especially in the last few days, coinciding with the correction of equity markets. There is a greater risk aversion, which is diverting capital to alternative assets such as gold and bitcoin.
Instead, the Swiss Franco and the Yen lose appeal, which traditionally are considered assets, due to the accommodating policies of the central banks, aimed at contrasting the excessive appreciation of the two currencies against the dollar.
New record for gold and other metals
The price of gold has touched a new milestone in the last hours, first breaking the roof of $ 3,500 the ounce and then positioning itself at $ 3,600 USD/ONCIA, if the daily performance is not exciting (+0.23%), the one at a week is already appreciable (+4.8%) and above all has the rise since the beginning of the year (+36%).
Also noteworthy is a curious element: at these levels the gold altitude about 100 times compared to the 1971 evaluation, when President Nixon put an end to the equality system of the change of Bretton Woods, setting indicatively the price of the precious metal at 35 dollars.
The sentiment of the investors on the gold is very positive, in response to the persistent tensions on the international front (Ukraine, Middle East, duties) and in view of the important appointments die next days, which will culminate on Friday with the data on the US labor market, which will be read in the perspective of the next moves of the Fed. And the US Central Bank returns to the foreground, because in two weeks it will most likely announce the first cutting of this year. A decision that will make the dollar depreciate further, already under pressure for some time.
Together with the gold also silver, which exchanges on new records of $ 41.64 the ounce (+0.12%). Also in this case the performance since the beginning of the year is more than brilliant (+42%) and also benefits from the weakness of the green ticket.
Bitcoin returns to 110,000 dollars
Bitcoin also returns to run, after a negative phase in place since mid -August. In fact, the cryptocurrency returned above 110 thousand dollars, reaching 110,930 dollars, up 0.48% compared to the eve.
The performance of the week is negligible (-0.3%), while the monthly one is quite negative (-3%), after a month of August favorable for the stock market, in the wake at the entry into force of a new system of calm duties of the USA compared to the main commercial partners (except India). System that is now put in discussion by the decision of a US Court of Appeal, which has declared the decisions on “illegal” Trump’s duties, forcing the president to appeal to the Supreme Court. Since the beginning of the year, Bitcoin maintains a rise of 18%.
Bitcoin, such as gold, also benefits from the expectations of a cut of rates by the Fed, which will make the dollar depreciate, expanding the appeal of alternative refuge assets.
