Gold prices fell for the fourth consecutive week near a 10-month low. The dollar price rose to a 20-year high as gold and bitcoin fell.
The bitcoin (BTC), equities, and gold markets show increasingly red numbers as investors flee to the U.S. dollar.

The U.S. dollar hit a 20-year high against the euro last week. This milestone comes at the same time that the gold ounce fell to USD 1,737, its lowest level in 10 months since September last year. And it is expected to fall further, according to specialists’ predictions.

Given the bearish trend in the markets in general, Matt Simpson, senior market analyst at City Index, argues, “A move down to USD 1,720 is on the cards.” Gold is not the only one being hit this season, though.

The 2022 stock market recorded its worst first half-year since 1970, while bitcoin fell 70% from its all-time high 8 months ago. The cryptocurrency, which reached almost USD 69,000 in November 2021, is now worth USD 20,300.

The price of bitcoin is close to the more than one-year low of USD 17,600 it touched three weeks ago. Its movement is evidence of the low demand in the current macro context, as is also the case with gold and equities.

Dollar rises as bitcoin, gold, and equities fall

The dollar’s growing strength in this scenario reflects that investors are fleeing to the U.S. currency to shelter its value in the face of inflation. Its rise exhibits that U.S. government policies are succeeding for the time being in keeping its currency from devaluing.

The dollar’s rise may also have been driven by demand in other countries. Especially, in those countries that have suffered these days a greater devaluation of their currency and an increase in inflation, such as Europe, Argentina, Colombia, and Chile.

Likewise, this context shows the bearish sentiment in the near future of gold, the stock market, and bitcoin. Although long-term bullish predictions for the main cryptocurrency continue among the most enthusiastic.

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