Gold Drops Below 200-Day Moving Average as Bitcoin Shows Relative Strength

Gold has slipped below its 200-day moving average for the first time since October 2023, signaling a potential shift in long-term market momentum. Gold is now trading below $4,300 per ounce after falling more than 20% from its record high of $5,600 reached in January.

The decline follows a remarkable rally that saw gold surge nearly 200% from under $2,000 per ounce. That rise was largely driven by concerns over rising government debt, heavy spending, and expectations that fiat currencies could lose purchasing power over time.

Strong Dollar and Rate Expectations Pressure Gold

Recent weakness accelerated after stronger than expected U.S. jobs data increased expectations that the Federal Reserve could raise interest rates by 25 basis points in December. Higher rates tend to strengthen the U.S. dollar and reduce demand for non-yielding assets such as gold.

Silver is also under pressure, testing support near its own 200DMA around $67 per ounce.

Bitcoin-to-Gold Ratio Climbs

Meanwhile, Bitcoin has recovered toward $63,000, pushing the Bitcoin to gold ratio up 3% to 14.72 ounces. While still well below its 2024 peak, the ratio’s resilience suggests Bitcoin is currently outperforming gold amid changing market conditions.