Gold and Silver on the Rise! Are Investors Fleeing Crypto?

Despite bearish external markets, gold and silver prices soared, attracting investors seeking safe havens. Meanwhile, the crypto market is collapsing, with Bitcoin and Ethereum dropping sharply! Highlighting the volatility and current challenges of digital assets.

Precious metals are soaring!

Gold and silver prices surged on Thursday, despite bearish external markets. December gold rose by $16.60 to $2,496.30, and September silver jumped by $1.186 to $28.525. U.S. economic data, including a 1.0% increase in retail sales in July and lower-than-expected jobless claims, reinforced the idea of a strong economy. 

Geopolitical tensions, with warnings of a possible Iranian attack on Israel which plummeted the crypto market a few months ago, also boosted the safe-haven demand for precious metals. Technically, gold bulls aim for resistance at $2,537.70, while bears seek to drop below $2,400.00. For silver, bears dominate in the short term, aiming for a downside price of $26.00.

Crypto is collapsing: Are investors in search of a safe haven?

Meanwhile, the cryptocurrency market is going through a tough period. The crypto market has collapsed by 25% in recent days, affecting major assets like Bitcoin and Ethereum. Ethereum fell by 20%, and Bitcoin saw $175 million liquidated. This crisis is attributed to several factors, including stricter regulations and a decline in investor confidence.

If this crisis in the crypto market persists, investors might increasingly turn to safe havens like gold and silver. These precious metals offer stability and security that the currently volatile digital assets cannot guarantee, thereby enhancing their appeal during times of economic uncertainty.

While precious metals are showing resilience against economic and geopolitical turbulence, the crypto market continues to struggle. Investors are seeking safe havens, and gold and silver seem to be answering this demand, unlike cryptocurrencies which are under intense pressure.