Gold, Silver Likely to Record Weekly Gains, Will Cryptocurrencies be Affected?

• Gold and Silver may rise by 0.4% and 0.7% over the last week, respectively.
• Cryptocurrencies are down, but likely due to many more factors.
• Cryptocurrencies are estimated to eventually record a bull run.

Gold and Silver are estimated to record weekly gains soon, paving the way for a possible additional upswing at a time when cryptocurrencies are fumbling for multiple reasons. Both precious metals rising, however, have triggered questions around how and if there will be any impact on cryptocurrencies.

Gold and Silver on Weekly Gains

Gold and Silver are expected to soon record weekly gains of 0.4% and 0.7%, respectively, according to a report by Reuters. They have already noted a daily gain of 1% and 3.99%, applicable in the same order. Gold is listed at $4,970.01 while Silver is trading at $78.28 when the article is being written.

Notably, Gold is still up by 8.41% over the last month, but Silver has shed 9.92% of its value.

The report has further underlined that Gold came under pressure when the US employment data was rolled out. It signalled that policymakers were likely to keep the rate unchanged despite Trump’s desire to lower it.

In Asia, India saw Gold flipping into a discount when demand dipped, but China noted a strong demand ahead of the Lunar New Year holiday. Gold and Silver remain on the line for investors as uncertainty gains momentum across the globe.

Cryptocurrencies Right Now

Gold and Silver gaining values do stand as a possible alternative to investors who want to avoid losses. However, cryptocurrencies have stood many tests in the past and are likely to overcome the ongoing turmoil. They have collectively lost 0.93% in the market cap, which is now hovering just above $2.29 trillion.

BTC and ETH are between the limited range, way below their respective expected levels. Bitcoin tokens are exchanging hands at $66,983.73 and Ethereum tokens at $1,966.65 when the article is being written.

Many factors are possibly influencing crypto prices and not just Gold or Silver. For instance, the concern around the CLARITY Act is unresolved, there is no confirmation over the next rate cut by the US Federal Reserve, and inflation data (due on Friday) can swing either way.

What’s Next for Cryptocurrencies?

In general, JPMorgan has estimated that bitcoin’s relatively lower volatility could make it more attractive than Gold. It has noted that even though the yellow metal has outperformed the flagship token, it has also linked itself to higher volatility in recent times.

BTC, ETH, and other major cryptocurrencies are forecasted to eventually break out from the current sluggish price movement.

That said, it is still important to do thorough research and risk assessment before crypto or any other kind of investment. The content of this article is neither advice nor a recommendation.

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