Gold's volatility has now surpassed that of Bitcoin, highlighting how the precious metal is exhibiting price swings comparable to the most turbulent periods of the past two decades, following its rapid ascent.
Data compiled by Bloomberg shows the 30-day volatility for gold has surged to over 44%, marking its highest level since the 2008 financial crisis. This figure exceeds the approximately 39% volatility of Bitcoin—the original cryptocurrency often dubbed 'digital gold.'
This reversal is particularly unusual, as gold is typically viewed as a more stable store of value compared to cryptocurrencies, which are notoriously susceptible to speculative influences. In the 17 years since Bitcoin's inception, gold's volatility has only exceeded that of the digital currency on two occasions, the most recent being in May of last year, when trade tensions escalated due to threats of import tariffs from then-U.S. President Donald Trump.
The heightened volatility in gold prices stems from their sharpest decline in over a decade, representing a dramatic reversal of the recent rally that some traders considered excessively rapid and overextended. On Monday, gold prices plummeted by as much as 10%, briefly falling to around $4,400 per ounce during Asian trading hours, after approaching the $5,600 mark just last week.
The precious metal's price had previously soared to historic highs that surprised even seasoned traders. In January, a surge in investor buying of gold and silver—driven by geopolitical turmoil, currency devaluation, and renewed concerns about the Federal Reserve's independence—abruptly accelerated an already fervent rally. A wave of speculative buying from Chinese investors further fueled the upward momentum.
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