Gold underperformed on Monday while stocks and cryptocurrencies surged as investors adopted a risk-on approach despite ongoing concerns over inflation and future interest rate cuts. Bitcoin climbed to $66,000 following the Wall Street open on October 14, driven by whale buying that boosted an already thriving crypto market.
While Bitcoin and stocks rallied, the gold market remained volatile. Spot gold dropped 0.2%, settling at $2,649.98 per ounce by 2:35 PM ET, following a peak earlier in the day. U.S. gold futures closed 0.4% lower at $2,665.60. Economic stimulus measures in China, the world’s largest consumer of gold, failed to restore investor confidence, adding pressure to the gold market.
The U.S. dollar surged to a two-month high, further limiting gold’s momentum. A stronger dollar makes gold more expensive for investors holding other currencies, dampening demand. Phillip Streible, chief market strategist at Blue Line Futures, explained that gold is facing “a lot of little headwinds,” including China’s stimulus efforts, a rising dollar, weaker base metal prices, and profit-taking. He added that gold’s recent rally has softened demand, especially in China.
Zain Vawda, market analyst at MarketPulse by OANDA, noted that Chinese economic data paints a mixed picture. While weaker data might lower gold demand, a broader economic slowdown in China could lead to higher demand for gold as a safe-haven asset.
Meanwhile, Bitcoin saw substantial gains, nearing 5% for the day, according to Cointelegraph Markets Pro and TradingView. BTC/USD hit two-week highs, fueled by strong U.S. buying, particularly during the Asian trading session. Trading resource Material Indicators reported increased buying by Bitcoin whales, with an eye on breaking the sell wall at $65,500.
Publicly traded crypto-linked companies in the U.S. also saw gains on October 14. Bitcoin briefly hit $66,400, its highest price since July 30, surging 6%. Miner CleanSpark (CLSK) led the performance, closing up 12.72% at $10.81 and rising another 1.72% after hours. Coinbase (COIN) followed with an 11.3% gain, reaching $196.35—its highest in seven weeks—while climbing further to $199.70 in after-hours trading.
Other crypto-linked companies, such as Iris Energy (IREN), saw gains of 10.21%, while competitors TeraWulf (WULF) and Marathon Digital Holdings (MARA) increased by 6.65% and 5.6%, respectively.
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