TechFlow news, September 8 — According to the latest report from Matrixport, gold prices are re-entering an upward channel, primarily driven by two factors:
-
U.S. debt expansion: Since the U.S. Congress approved a $5 trillion increase in the debt ceiling, the U.S. has already issued $1.2 trillion in new debt, becoming a major driver behind rising gold prices.
-
Political influence: Trump's growing influence over Federal Reserve decisions, with his supported candidates potentially gaining a majority of seats soon.
Meanwhile, crypto funds are accelerating inflows into gold tokens, elevating gold's status as an asset. However, due to the high correlation between gold and Bitcoin, its effectiveness as a risk diversifier is limited. Amid weakening confidence in U.S. fiscal discipline, investors may continue seeking more diversified safe-haven asset allocations.
