Matrixport: Gold and Bitcoin prices are surging, and the real sovereign impact may come later

In May 2023, when gold prices were testing the $2,000-an-ounce mark, we noted that central banks had increased their gold holdings for 11 consecutive months, setting the stage for a decisive breakthrough, according to a daily chart analysis published by Matrixport. The resilience shown by gold was heralding a structural shift in the global monetary landscape - a trend that Bitcoin had not yet reflected at the time. At that time, gold was hovering around $2,000, and Bitcoin was trading around $30,000. Judging from the historical momentum and valuation correlation between the two, this means that Bitcoin has the potential to make up for the 45,000 dollar range.
The current surge in gold prices fits a pattern of historically significant increases in gold only in times of crisis. While the US and other major economies are pursuing massive fiscal expansions, the independence of the Federal Reserve is under increasing pressure. However, rather than generating significant productive growth multipliers, these fiscal expansions have exacerbated currency depreciation, leading to structurally high inflation and weak real economic growth.