Gold is approaching its ATH due to possible US recession

In recent weeks, the price of gold has suddenly grown and is probably starting to hit new ATHs, after having once again exceeded the value of $2000, as happened exactly one year ago. In the month of March of this year alone, the value of gold increased by more than 10% and sees its all-time high recorded at $2,075.47 as its next target, reached in August 2020, after the outbreak of the pandemic.

The new climb was strengthened in early March with the banking sector crisis, initiated by Silicon Valley Bank and later with Credit Suisse, among other small banks. Unfortunately, faced with the sudden interest rates applied by the FED and the European Central Bank, they caused the liquidity in circulation to collapse, putting small credit institutions in crisis.

The climate of distrust and the fear of an increasingly palpable recession, especially in the USA, pushes small savers but also large institutional investors to massively buy the yellow metal, also to fight an inflation that seems to be declining albeit very slowly. The less than optimistic forecasts of the prolongation of the crisis and the uncertainty of a war between Russia and Ukraine which by now seems increasingly long and distant from a shared peace, push even more to invest in gold as a safe haven.

We have observed how, similarly to the price of gold, Bitcoin has also accelerated in value, a sign that investors do not mind diversification and still consider the cryptocurrency a safe asset, despite last year's scandals such as the collapse of the Earth and FTP extension.

Although many investors are funneling money into the precious metal, buying at this price could also be a bit risky as we are now close to the new ATH and there could also be a speculative movement. The precious metals market is certainly promising yet Bitcoin at $28k really has an irresistible appeal, still halfway from its ATH. And what would you choose?

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