The price of spot gold has hit a 4-month high driven by the crash of the cryptocurrency market. More precisely, the price of spot gold last week hit its highest level since January 8.
The record $1,889, which was hit last week, has been reached after its price crashed to $1,680 in early March. Now, the price of the precious metal remains very close to that level at $1,887 at 9:00 AM CET.
Curiously, the recent spike in the price of gold comes shortly after the cryptocurrency market started to fall on May 12, when the market cap’s dipped from $2.5 trillion to $1.3 trillion on Sunday.
Experts from the investment bank JPMorgan have suggested institutional investors have been selling Bitcoin to buy gold, which would explain both the fall of the crypto and the rise in the price of the precious metal.