As gold climbed toward the psychological $1,500 mark, another speculative asset has also been staging a recovery.
is well away from its historical peak; in fact, it’s below the recent June high. However, the two assets look to have been marching in lockstep over the past three months, a relative rarity.
We noticed a similar phenomenon three years ago. At the time, U.K. voters had just made the surprise decision to exit the European Union. The pound sank and the rest of the world was left in a panic trying to figure out what it all meant. At the time, we were unconvinced that bitcoin had joined gold as a haven asset, writing that it would take a few more bouts of global fear to confirm that hypothesis.
Uncertainty is back. U.S.-China tensions have escalated beyond trade to include a technology Cold War and this week’s managed drop in the yuan, which swiftly incurred the wrath of President Donald Trump.