Wednesday, October 31, 2018

October saw gold outperform Bitcoin for the first time in several months

As market volatility raged through both the equity and bond markets in the month of October, an interesting dichotomy took place between two alternative assets.  And that is that for the first time in several months, gold outperformed Bitcoin.

While stocks fell, gold prices gained. Prices for the yellow metal started the month at $1,189 a troy ounce and were recently trading at $1,220, according to data from Bloomberg
Meanwhile, Bitcoin, which has been much heralded as a new alternative asset, lost value. The price of one Bitcoin started the month fetching $6,573 and was recently trading for $6,271. That's a drop of more than 4% so far in October. 
In this case, it should be clear that during the volatile month of October gold was a far superior safe-haven asset than was Bitcoin. - Forbes
Both Bitcoin and gold have for the most part traded in tight ranges minus a strong move by the precious metal back on 11th which took its price to up around $1240 per ounce.  And with markets expected to be even more volatile going forward after both the Fed and ECB announced less 'accommodative' policies during their last meetings, investors will be seeking to park their cash in safer havens than that of Treasuries or dollars.


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