{"id":18885,"date":"2023-03-18T18:54:50","date_gmt":"2023-03-18T18:54:50","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/analysts-suspect-banking-crisis-triggered-resting-bull-market-in-gold-silver-could-print-much-higher-gains-bitcoin-news\/"},"modified":"2023-03-18T18:54:50","modified_gmt":"2023-03-18T18:54:50","slug":"analysts-suspect-banking-crisis-triggered-resting-bull-market-in-gold-silver-could-print-much-higher-gains-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/analysts-suspect-banking-crisis-triggered-resting-bull-market-in-gold-silver-could-print-much-higher-gains-bitcoin-news\/","title":{"rendered":"Analysts Suspect Banking Crisis Triggered ‘Resting Bull Market’ in Gold, Silver Could Print Much Higher Gains \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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At the start of the week, a troy ounce of .999 fine gold was trading at $1,813 per unit. Seven days later, gold rose 9.65% against the U.S. dollar to the current spot price of $1,988 per ounce. Gold\u2019s rise comes at a time when confidence in the global banking system is at an all-time low, and five major banks have received bailouts. An ounce of fine silver also increased in value, rising more than 12% from $20.01 to $22.59 per ounce this week.<\/strong><\/p>\n

Gold and Silver Prices Surge Amid Banking Crisis and Expectations of a Dovish Fed<\/h2>\n

The price of gold<\/a> is approaching the $2,000 per ounce mark after numerous U.S. and international banks showed signs of extreme weakness. The Federal Reserve lent banks $164.8 billion<\/a> in five days, erasing almost 50% of the U.S. central bank\u2019s monetary tightening policy. As a result, the market expects a dovish rate hike this month, possibly around 25 basis points, or even no rate hike<\/a> at all after the financial calamity the banking industry has faced. According to TD Securities\u2019 global head of commodity strategy Bart Melek, this is \u201cgood news for gold,\u201d he told<\/a> Kitco News.<\/p>\n

\u201cMarkets are concluding that we\u2019ll see the Fed go for another 25bps increase and then probably sit on it for a while and see what happens,\u201d Melek explained. \u201cThe view from the gold perspective is that given disruptions in the banking system and the U.S. Treasury Department\u2019s willingness to help, we might get accommodation that allows inflation to hang around longer at a higher level.\u201d<\/p>\n

Gold<\/a> surged 9.65% against the U.S. dollar this past week, and silver also rose 12.61% higher over the last seven days. Meanwhile, the U.S. Dollar Index (DXY)<\/a> has fallen from 105.65 at the start of the week to the current level of 103.864. Statistics analyst and market movement forecaster Northstar<\/a> tweeted about gold\u2019s performance over the years compared to the DXY 21 days ago. \u201cIn 1974, the DXY was 105 [and] gold was $150,\u201d Northstar said<\/a> at the time. \u201cIn 1981, DXY was 105 [and] gold was $450. Today, DXY is 105, [and] gold is $1,810. Do not fear a rising U.S. Dollar Index \u2013 over time, gold faithfully tracks purchasing power destruction.\u201d<\/p>\n

Bloomberg\u2019s senior macro and commodities strategist Mike McGlone referred to gold as a \u201cresting bull\u201d three days ago, on March 15. \u201cGold appears to be a rare resting bull market compared to most risk assets and commodities that are reverting from getting overextended, on the back of pandemic-related excess liquidity,\u201d McGlone said in an investors\u2019 note<\/a>. \u201cPlunging crude oil may be part of the deflationary spark for the metal to breach resistance of $2,000 an ounce. If history is a guide, 300 rapidly declining commodities, a banking crisis, and Federal Reserve tightening pose an oxymoron and could trigger a Fed pivot buoying gold,\u201d McGlone added.<\/p>\n

Silver Could Post Much Larger Gains than Gold; Bitcoin Poised to Trade like Gold and U.S. Treasury Long Bonds<\/h2>\n

Richard Mills<\/a>, the owner of aheadoftheherd.com, explained on Friday that he believes silver\u2019s rise<\/a> is understated. \u201cCurrent indications show that silver is way undervalued,\u201d Mills said<\/a>. \u201cRight now, on the morning of March 17, the gold-silver ratio is 88:1, meaning it takes 88 ounces of silver to buy one ounce of gold.\u201d Mills added that when gold reached $2,000 per ounce, \u201csilver rallied to nearly $30 an ounce, a 147% increase.\u201d The investor said that the silver-gold ratio just fell from over 100:1 to just over 64:1, and he opined that a significant rise in silver\u2019s value \u201ccould easily happen again.\u201d<\/p>\n

Many gold and silver proponents have high hopes<\/a> for the precious metals going forward. Moreover, while McGlone believes gold will be affected by the current macroeconomic events, the market strategist also thinks the banking issues may be a defining moment for bitcoin (BTC<\/a>). \u201cBitcoin may be progressing to trade more like US Treasury long bonds and gold as banks come under stress on the back of the bond-price collapse. Bitcoin sustaining above $25,000 is a clear sign of divergent strength,\u201d McGlone tweeted<\/a>.<\/p>\n

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asset allocation<\/a>, Banking Crisis<\/a>, Bart Melek<\/a>, Bitcoin<\/a>, commodities<\/a>, commodity prices<\/a>, Cryptocurrency<\/a>, Diversification<\/a>, Federal Reserve<\/a>, Financial Markets<\/a>, Global Economy<\/a>, gold<\/a>, inflation<\/a>, investment<\/a>, Investors<\/a>, market analysis<\/a>, Market Disruption<\/a>, Market Forecast<\/a>, market outlook<\/a>, Market Performance<\/a>, Market predictions<\/a>, Market Risks<\/a>, Market Strategy<\/a>, Market Trends<\/a>, Market Uncertainty<\/a>, market volatility<\/a>, Mike McGlone<\/a>, Northstar<\/a>, Northstar Charts<\/a>, pandemic<\/a>, portfolio management<\/a>, Precious Metals<\/a>, Richard Mills<\/a>, risk assets<\/a>, silver<\/a>, trading strategies<\/a>, US Dollar Index<\/a>, US Treasury Bonds<\/a>, Wealth preservation<\/a><\/div>\n<\/div>\n

What are your thoughts on the current state of the global banking system and its potential impact on the value of gold, silver, and other assets like bitcoin? Do you think we\u2019re headed for a major financial crisis, or is this just a temporary blip? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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