Gold breaks through $4800, the underlying logic behind it is worth paying attention to

【Crypto World】Gold recently stabilized above the $4800 mark, reflecting an interesting phenomenon in the market — both retail investors and institutions are waiting for the right moment. Many people are actually reluctant to sell at the $5000 round number, which indicates continued optimism about gold’s future prospects.

Why is this happening? It mainly results from the convergence of several forces. First, the debt issue: global debt levels are increasing at an alarming rate each year, with countries printing more money, which directly boosts demand for safe-haven assets like gold. Second, the US dollar has been somewhat weak lately; although it remains the world’s reserve currency, its relative weakness has indeed provided room for gold to rise. Additionally, geopolitical tensions are unclear and unpredictable, with hot spots constantly emerging. When investors get nervous, they tend to flock to safe-haven assets like gold and Bitcoin.

These factors together explain why gold prices can stay so resilient. Of course, the crypto market and traditional asset markets also influence each other, and this macro environment has significant implications for our trading rhythm.