The price of gold is struggling and is unable to break past its $2,050 an-ounce threshold. The yellow metal has been hovering over $2,050 and is unable to attract new bullish momentum despite noting a stop in US economic data.
A dip in US economic data metrics would usually propel investors to explore gold as a hedge, driving its value up a notch.
However, consumer optimism seems to be jaded despite US economic data projecting a drop in the US consumer confidence index.
Also Read: Analysts Predict Bitcoin ETFs to Gold ETFs In AUM in Less Than 2 Year
Recent Gold Update
Per a recent conference board report, the Consumer Confidence Index has noted a significant drop in its stats in February. The metrics have fallen to 106.7, down from January’s 110.90.
“February’s decline in the index occurred after three consecutive months of gains. However, as January was revised downward from the preliminary reading of 114.8, the data now suggest that there was not a material breakout to the upside in confidence at the start of 2024,” the report later shared.
Consequently, other leading economic markers concerning gold, including the present situation index and expectations index, have also noted a slight drop in their metrics.
The present situation index dropped to 147.20 from 154.9 in January, followed by the EI dropping to 79.80 from 81.50.
The drop in metrics indicates that investors are not pivoting towards gold despite the US dollar’s dampened state. This also means that investors are not keen to explore gold at the moment, adding more to its descent.
Also Read: Gold Price to Retest $2050; What to Expect in March 2024?
The Gold vs. Bitcoin ETF Debate Catches Pace.
The Gold vs. Bitcoin spot ETF debate is catching pace amid gold’s dropping metrics and market sentiment.
Several notable crypto analysts have dropped major predictions, adding that Bitcoin spot ETF momentum could soon surpass gold ETF popularity.
Bloomberg analysts Eric Balchunas and Andre Yapp were recently seen making a similar projection. They shared how the spot Bitcoin ETF wave could soon sweep everyone in its wake.
“Bitcoin ETFs, though barely six weeks old, have taken in over $8 billion more than gold peers, already have 40% as much in assets, and could pass them in size in less than two years,” the Bloomberg analysts noted.