Gold is outperforming Bitcoin as softer U.S. job data, falling Treasury yields, and a weaker dollar increase demand for the precious metal. Investors have sharply reduced expectations for another Federal Reserve rate hike in September, fueling gold’s rise to a seven-week high.
USDT
AAPLGold surges on economic shifts
Spot gold closed Friday at $4,336 per ounce, up 2.3% for the day and more than 7% over the week. This marks gold’s strongest weekly performance since January. The rally followed July’s U.S. jobs report, which showed payrolls dropping by 23,000 instead of the anticipated increase of 80,000 jobs. This surprise signaled to investors that the Federal Reserve may keep rates unchanged at its next meeting.
In response, both U.S. Treasury yields and the dollar weakened. Lower interest rates typically make gold more attractive because it does not pay interest, reducing the opportunity cost of holding the metal.
Gold achieved a seven-week high this week, climbing over 7% as optimism about further interest rate hikes faded and economic data disappointed expectations.
Long-term demand remains strong as well. The World Gold Council reported that central banks added a net 41 metric tons of gold in May. In addition, 89% of reserve managers surveyed indicated they expect global central-bank gold reserves to rise over the coming year.
UBS, a major Swiss investment bank, has projected that gold could hit $5,000 per ounce in the first half of 2027. However, such forecasts reflect current market assessments rather than certainties.
Bitcoin vs. gold: Technical perspective
Bitcoin traded near $64,956 on Saturday, remaining in a weaker position compared to gold. A long-term BTC/GOLD ratio chart shared by trader @trading_axe illustrated that Bitcoin’s momentum relative to gold remains subdued. The chart showed the BTC/GOLD ratio forming a lower high before breaking below a key midpoint marked at 430 million, with the current level hovering near 300 million. This suggests a continued decline in Bitcoin’s strength versus gold.
The chart pinpoints the 251 million mark as the next crucial horizontal support for Bitcoin relative to gold. The scenario presented on the chart allows for potential sideways movement and a possible retest of this zone before any sustained rebound. A recovery back above approximately 310 million, and ultimately toward the midpoint of 430 million, would indicate an improvement in Bitcoin’s relative performance.
| Asset | Recent Price | Weekly Change | Key Driver |
|---|---|---|---|
| Gold | $4,336/oz | +7% | Weaker job data, lower yields |
| Bitcoin | $64,956 | N/A | Relative weakness to gold |
To shift momentum back toward Bitcoin, it would need to defend the 251 million support level and reclaim the 310 million area on the ratio chart. Any move above the former midpoint at 430 million would signal a more pronounced reversal. If Bitcoin fails to hold support at 251 million, it could face deeper declines relative to gold.
The trader behind the technical analysis expects gold to remain dominant until the BTC/GOLD chart forms a more sustainable long-term bottom, potentially not occurring until late 2026.
The current macroeconomic environment supports this technical view, with weak U.S. jobs data and a muted outlook for interest rate increases benefiting gold’s appeal against Bitcoin. Market participants are now awaiting the next inflation data release on August 12, which could provide pivotal direction for both assets.
Until clear signs of reversal emerge, the advantage remains with gold in the ongoing comparison with Bitcoin.
Mini dictionary: World Gold Council—A leading organization that gathers and publishes gold market data, conducts research, and represents gold mining companies globally.
