This week, the record-breaking rally in gold prices has temporarily come to a halt as traders took profits ahead of the Federal Reserve's policy decision in October, ending the eight-week streak of rising gold prices.
This pullback has alleviated safe-haven demand and for the first time in weeks has shifted some attention back to risk assets, including Bitcoin, which is priced at $111,700.54.
Spot gold prices have fallen over 6% from the historical high of $4,380 per ounce reached on Monday, closing around $4,120 over the weekend. This pullback was driven by profit-taking, significant outflows from exchange-traded funds (ETFs), and a shift in the tone of Sino-U.S. trade relations.
Officials from both countries stated that they have reached a "preliminary consensus" on key trade issues, alleviating concerns about a new round of tariff cycles that had previously driven up gold prices.
U.S. Treasury Secretary Scott Basset stated on Sunday: "The threat of imposing 100% tariffs on Chinese goods has essentially disappeared." Previously, two days of talks in Malaysia laid the groundwork for a broader agreement between President Trump and China.
The weakening macroeconomic environment, coupled with expectations that the Federal Reserve will cut interest rates by 25 basis points again this week, has dulled the parabolic rise of gold. Ahead of Wednesday's Fed decision, silver and platinum prices also fell sharply, indicating signs of a market pullback.
However, this timing may be coincidental for BTC.
After lagging behind gold for most of the quarter, Bitcoin has risen more than 5% over the past week, returning to the level of $113,500, breaking free from a month-long narrow range.
This move comes as the Bitcoin/gold ratio (which measures Bitcoin's relative value against gold) is experiencing the most severe overselling in nearly three years. CoinDesk analyst Omkar Godbole.
The 14-day Relative Strength Index (RSI) for this ratio fell to 22.20 last week, below the February low, marking the lowest level since November 2022. Historically, such extreme conditions in the BTC/gold ratio have coincided with local bottoms for Bitcoin, which are usually followed by periods of strong performance, as traders tend to return to high-beta assets once macro panic subsides.$BTC $COAI $币安人生 #加密市场反弹 #美联储降息预期 #巨鲸动向 #美国政府停摆
