Over the past 48 hours, gold volatility has skyrocketed, with the asset gaining several times the equivalent of BTC’s market capitalization and losing several times the equivalent of the crypto market’s market capitalization. Let’s take a closer look at this roller coaster ride.
Gold volatility soars
On Thursday evening, we reported on the fall in cryptocurrencies, which also affected precious metals. Gold plummeted 8% in less than an hour, after reaching an all-time high (ATH) of around $5,600 the night before.
With the famous yellow metal now capitalized at $35.75 trillion, this makes the volatility we have seen in recent days even more surprising, given that we are talking about the world’s most capitalized asset.
Yesterday, we also reported that in a single trading session, gold had gained the equivalent of Bitcoin’s (BTC) market capitalization. On X, The Kobeissi Letter account goes even further, identifying that this same market cap fell by $3.2 trillion in 55 minutes, more than the entire market cap of cryptocurrencies, before rising by $2.3 trillion in a few hours:
Since this publication, gold has fallen by a further 9.42%, equivalent to approximately $3.576 trillion in market capitalization. Since then, the asset has risen back to $5,150 per ounce, representing a decline of 3.94% over 24 hours:
With gold and silver hitting record highs, precious metals are currently experiencing a speculative bubble. Although the rise is also due to logical factors, such as macroeconomic uncertainty and protection against currency devaluation, it is important to remain cautious in such periods. And for good reason: high volatility can pose a risk to small investors who succumb to FOMO syndrome.
