Spurred by the U.S. government shutdown, growing concerns over the country’s fiscal situation and a weakening dollar have driven gold and Bitcoin prices to repeatedly hit new highs. Gold has surpassed $3,900 per ounce, while Bitcoin has exceeded $125,000. The dollar index has fallen by approximately 10% year-to-date. Analysts believe that driven by long-term inflationary pressures, high deficits, and other structural factors, there remains upside potential for these assets.
Amid growing concerns among investors about the U.S. fiscal outlook and the value of the dollar, a ‘depreciation trade’ designed to hedge against a weakening dollar has become one of the most popular investment themes this year, driving both gold and Bitcoin prices to historic highs.
The partial shutdown of the U.S. federal government that began last Wednesday further fueled this trade. On Monday, spot gold broke…
