Gold and Bitcoin, two antagonistic assets, reached all-time highs on the same day as investors feared "losing the team."

 Analysts predict that their prices will continue to rise in the near future and recommend investing in the best yellow metals and risk cryptocurrencies.

 

Chance can happen in the markets and sometimes it does. But what happened this week is “so improbable that it is hard to believe,” analysts say. And it is that two antagonistic assets such as gold - a safe haven value in which the most conservative savers invest - and bitcoin - one of the most volatile assets and on which only the riskiest bet - reached all-time highs in price on the same day. , March 5.

 Gold broke records, trading at $2,140 an ounce, the highest price since $2,000 in early December last year, while bitcoin hit a high of $69,191, following its last record of $69,000 in November. 2021.The reasons that have caused this coincidence are difficult for analysts to explain: “I would not be able to say if it is a coincidence or if it is a consequence of something specific,” says Antonio Castelo, iBroker analyst. He argues that, Normally, gold tends to gain prominence in times of geopolitical or economic uncertainty, which is when investors usually look for safe haven assets with which to balance their portfolios.

 Furthermore, "it happens that gold is an asset that is not correlated with the stock market, so certain investors, in portfolio diversification processes, include it in their portfolios." Regarding bitcoin, he considers that it is possible that The causes of its new 'boom' are in the admission to trading in January of several ETF funds, which replicate the value of this cryptocurrency and which "are having great success, because they offer thousands of investors the possibility of saving in a crypto asset without the drawbacks of direct investment in it and allows them to diversify their investments.”

The catalysts for the rise:

 Sergio Ávila, senior analyst at IG, points out another of the causes that have triggered the price of both assets. He attributes the rise in gold to the fact that it has been driven by the weakness of the dollar and US Treasury yields, which have plummeted due to growing expectations that the US Federal Reserve (Fed) will soon begin a rate cut of interest. To which in the case of bitcoin "is added the proximity of the next 'halving', an event that is usually the beginning of new bubbles in the cryptocurrency." The current economic and geopolitical context also helps, generating a breeding ground that has skyrocketed the price of both assets: Russia's invasion of Ukraine, the war between Israel and Hamas, transport logistics problems and the upcoming elections in the United States make investors opt for both assets.

 The comeback will continue because both gold and bitcoin have a long way to go. In the opinion of analysts, they have not yet reached their ceiling: “The forecasts are bullish for both assets. Gold has support at $2,079.5 while bitcoin has support at $59,156. As long as both remain above their respective supports, the predisposition is bullish,” says Sergio Avila. For his part, Castelo is more conservative and assures that after his dizzying rise we may “be close to a correction.”

However, he believes that gold has conditions to “perform well” in the coming years, since it is correlated with real interest rates. “A rise in real long rates usually drives down gold prices, while the contrary movement, the drop in interest rates, which is what is going to occur this year as the central banks have announced, will, in theory, make gold rise,” explains Castelo. He warns that we are now in “a very complicated time.” , where we still cannot rule out the possibility of experiencing a strong recessionary period in the economy. And that is where gold can behave as a safe haven asset.”Another factor that redoubles its commitment to gold is that central banks are increasing their purchases of physical gold in recent times, so Castelo believes that “these are good arguments to think that gold can perform well in the coming years.”Bitcoin becomes 'older'As for bitcoin, the iBroker analyst believes that the same arguments can be used as with gold, and even more so when “ It has always been said that it aspired to be considered a safe haven asset." However, he indicates that, although crypto has that aspiration, "it still has a long way to go to achieve it. Although the latest movements that have been seen regarding its acceptance by large investment houses as a 'more conventional' financial product, perhaps put it on the right path."

 Entering gold and bitcoin, a good strategy The upward trend of both assets makes it “interesting” to invest in them now, analysts recommend: “It is a good time to enter both, but I would recommend entering on days when there are setbacks in prices to get better entry points and be able to adjust the loss stops and, therefore, the risk more”, recommends Sergio Ávila. Regarding which profile of investors each product is suitable for, Ávila advises that gold is more suitable for investors conservative, because it has less volatility, while bitcoin is for risk-prone investors because “its beta is higher than that of the market, this means that when the market as a whole rises, bitcoin usually rises much more , but it also happens that when the market falls, cryptocurrencies do so more aggressively.”