Market uncertainty has put gold on track to hit $2,000 per ounce on Monday, hitting levels not seen since August 2020. Palladiumanother metal considered a hedge for inflation, reached an all-time high of $3,015 per ounce. Meanwhile, other metals like silver and platinum are hitting six-month highs.
fake images
"Further rally would likely lift prices further. The latter would likely have a more lasting impact as it could push the global economy into a stagflation scenario, which we see as very bullish for gold," said Carsten Menke, an analyst at Julius Baer. Reuters.
Related: 5 things to know before investing in cryptocurrencies
However, the cryptocurrency has not fared well even though it is also touted as a hedge for inflation. Bitcoin has fallen 4.Four. Five% over the last week, while Ethereum has fallen 7.21%.
Crypto experts have offered different reasons for this, with explanations ranging from its lack of ubiquity to its position as "stimulus asset".
Crypto remains primarily a speculative asset rather than a true alternative. So it correlates with the general risk on/off mindset. That will and is changing as usage increases.
โAsiff Hirji (@AsiffHirji) March 7, 2022
However, those who find themselves in uncertain market conditions could find refuge in cryptocurrencies. According to coindeskBitcoin price rose over 14% on February 28 due to expectations that Russians and Ukrainians would use cryptocurrencies to hedge against volatility in their fiat currencies.
โLast week's relief rally stemmed from the idea that Russia (and others) could potentially be big buyers of BTC as an alternative reserve asset after the world was able to unanimously unplug one country from the global monetary system almost entirely. overnight," Quinn Thompson of Maple Finance. he told Coindesk.
Related: Bitcoin Crashes Below $40,000 as Russia-Ukraine Tensions Rise
