Commodity trader Peter Brandt claims that gold remains in a long-term bear trend against Bitcoin.
The weekly chart shared by Brandt shows that the XAU/BTC ratio has been in a persistent downtrend for over a decade.
Gold resumes its rally
Earlier today, gold, which is viewed as the most popular safe haven asset, surged to a two-week peak of $3,407. The yellow metal is attracting more buyers due to rising odds of rate cuts being implemented by the U.S. Federal Reserve this year.
Growing trade tensions are also contributing to the ongoing gold rally, Reuters reports.
On Apr. 22, gold reached a new all-time high of $3,500, which came after massive tariffs announced by the U.S.
Gold failed to sustain the rally after the U.S.-China tariff detente, but it is now catching a bid once again.
Will Bitcoin catch up?
The yellow metal is still up by 29% since the start of the year. It has outperformed Bitcoin, which is only up by a mere 24% this year despite a slew of bullish catalysts.
Mike McGlone, who recently turned bearish on Bitcoin, recently noted that the Bloomberg Galaxy Crypto Index barely managed to match the gains recorded by the S&P 500 this year, showing how dismal the performance of the nascent asset class is this year.
As reported by U.Today, Fidelity's Jurrien Timmer previously forecasted that Bitcoin would be able to race ahead of gold in the second half of the year.
However, Bitcoin only managed to briefly surpass gold in terms of year-to-date returns in July when it hit its current all-time high of $122,838.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team