Matrixport: Central banks' continued gold purchases may explain the strength of gold and the relative pressure on Bitcoin.

Matrixport's chart analysis points out that the continued rise in gold prices is primarily driven by renewed concerns about the weakening purchasing power of the US dollar. Against the backdrop of Trump's renewed push for tariffs on Europe, the dollar is under pressure, while discussions about foreign central banks potentially reducing their holdings of US Treasury bonds and shifting more foreign exchange reserves to gold have increased significantly. The analysis suggests that gold's relative strength is closely related to official sector demand. Central banks worldwide are continuously increasing their gold holdings, with the People's Bank of China (PBoC) being particularly closely watched, providing sustained buying support for gold prices. In contrast, Bitcoin is still less commonly included in central bank reserve diversification frameworks in terms of public disclosure. For policymakers, gold remains a more mainstream asset and more in line with existing reserve management systems, while Bitcoin has not yet been widely accepted in official foreign exchange reserves. Matrixport suggests that this divergence in central bank asset allocation may, to some extent, explain the recent strength of gold and the relative weakness of Bitcoin.