Gold Price News and Forecast: XAU/USD quickly reversed an intraday dip to the $1850 region amid the prevalent cautious mood
|Gold vs Bitcoin: What is the best hedge against inflation?
Gold has traditionally been considered a safe haven. Once upon a time, it was used to back almost all currency around the globe. While it does not do that, it is still extensively used by investors who want to hedge against inflation.
However, there is a new investment class that claims to do the exact same thing. Cryptocurrency such as Bitcoin was specifically built to not crackdown under the pressures of the bull/bear market cycles. Like gold, it has a limited supply. However, the two could not be more difficult in most aspects.
Gold Price Analysis: XAU/USD refreshes session tops, around $1865 area
Gold rallied around $15-16 during the mid-European session and jumped to fresh daily tops, near the $1865-66 region in the last hour.
The precious metal managed to attract some dip-buying near the $1850 region and was now looking to build on the previous session's goodish bounce from the $1837 region. Investors turned cautious following the disappointing release of German IFO business survey results. This, in turn, was seen as one of the key factors that provided a modest lift to the safe-haven XAU/USD.
Against the backdrop of a delay in vaccine supplies, Monday's data further fueled worries about the potential economic fallout from the ever-increasing coronavirus disease and weighed on investors' sentiment. The anti-risk flow was reinforced by an intraday pullback in the US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal.
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