Gold Lags Far Behind Bitcoin as Vaccine Optimism Buoys Markets

Bitcoin is outshining gold by a significant margin in price terms as expectations soar of a swift global economic recovery enabled by promising coronavirus vaccines.

While the top cryptocurrency by market value has risen 22% to cross $17,000 this month, the precious metal is up just 0.5% at the current price of $1,890 per ounce.

The demand for traditional haven assets such as gold has declined this month as two Big Pharma firms, Pfizer and Moderna , announced positive results for their experimental coronavirus vaccines.

The resulting speculation that the global economy may well return to normality as soon as the second half of 2021 has triggered a rotation of money out of defensive assets and into risk assets, according to an outlook from Ole Hansen, head of commodity strategy at Saxo Bank. Bitcoin , too, is considered “digital gold” by many. However, the increased risk appetite in traditional markets and the […]

Click here to view original web page at finance.yahoo.com

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.