Gold and Bitcoin Head back to Highs as Middle East Tensions Escalate

Gold is not far from getting back to its all-time high of $3,500, while Bitcoin has bounced hard from its recent set-back and is back over $105,000 again. Both of these assets are arguably the premier safe-haven flights to safety. With the Middle Eastern conflict possibly about to escalate, can these assets rebound to all-time highs? Poorly correlated but heading in the same direction Even though both gold and Bitcoin can be categorised as safe-haven assets, the correlation between the two of them could be said to be volatile and inconsistent. Even so, while gold has been rising of late, as Bitcoin has been undergoing a correction, a recent bounce from Bitcoin has put the king of the cryptocurrencies back into the reckoning for a return to all-time highs. Gold confirms bull flag breakout Source: TradingView The daily chart for gold illustrates how it was moving inside of a rising channel for a long period of time. A breakout of this channel and confirmation have contributed to the development of a bull flag, a breakout of which has been confirmed and now the price is climbing higher. The measured move out of the bull flag is to $3,700. Bitcoin bounces sharply from support Source: TradingView The daily Bitcoin chart shows the relatively sharp climb up from $74,000 to the $112,000 all-time high. Following such a climb it was only natural for the price to consolidate sideways for an extended period. This resulted in the price going as low as $100,400. Since then, the price spiked, and more recently with the Middle Eastern conflict, it fell back down to support at $102,800. However, the collapse was bought back up very quickly, leaving a long candle wick behind and a bullish pinball candle. Gold or Bitcoin to take the lead from here? Source: TradingView The Bitcoin/Gold chart in the daily time frame reveals a real battle between the two sound money assets. Going back a lot further than the above chart shows, Bitcoin has been winning that battle hands down for most of its history. That said, Bitcoin has been unable to consistently stay above the Bitcoin/Gold price of 37 ounces, last set in April 2021. With central banks still buying a lot of gold, and with Bitcoin treasuries being set up left, right, and centre, it remains to be seen which of the two assets will take the lead from here. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily