Gold is at a critical juncture relative to the U.S. money supply (M2SL), testing a level it last reached in 2011 and has not exceeded since the 1970s, when the price more than tripled to a multi-year high of $700 an ounce.
On the other hand, bitcoin called by some supporters digital gold, fell toward a support level, revisiting the lows it last touched during the “tariff crisis” in April.
In 2011, gold cost $1,800 per ounce. It’s now about $4,500. Compared to the money supply, which represents the total stock of dollars in circulation in the U.S. economy, including cash, bank deposits, and liquid savings, the price has reached a level that has historically acted as a major resistance area.
To achieve this, the precious metal has surged 70% this year. This is in stark contrast to bitcoin, which is down around 10%. Nonetheless, bitcoin continues to make new highs relative to the US money supply every cycle, and the current support level also marks the previous cycle high in March 2024.
