In a recent development reported by Bloomberg, both gold and Bitcoin saw notable gains subsequent to US President Joe Biden’s announcement of his decision to withdraw from the upcoming presidential election.
Early trading in Australia saw bullion prices climb by as much as 0.5%, reaching US$2,409.27 ($3,602.75) by 10:45 am AEST, marking a 0.35% increase. Simultaneously, Bitcoin prices, which initially experienced a brief decline following Biden’s announcement, rebounded to a 0.88% rise, settling at US$68,335.31.
The surge in gold prices can be attributed to increased market uncertainty triggered by Biden’s unexpected move. Moreover, the announcement led to a weakening of the US dollar, further bolstering gold’s appeal. Typically, gold thrives in environments where the US currency depreciates.
Last week, bullion had already reached a record high amidst growing anticipation of monetary policy easing by the US Federal Reserve. Historically, lower interest rates have favored gold, which does not yield interest.
Bitcoin, on the other hand, found support from Biden’s withdrawal, as some market observers perceived this development as potentially beneficial for Donald Trump’s electoral prospects. Trump has garnered attention as a candidate considered favorable towards cryptocurrencies, a sentiment reinforced by his scheduled appearance at a major Bitcoin conference in Nashville on 27 July.
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