Gold is at a critical juncture when measured against the US money supply (M2SL), testing a level it last reached in 2011 and has not surpassed since the 1970s, when the price tripled to a then-record $700 per ounce over the course of several years.
On the contrary, bitcoin which some supporters refer to as digital gold, has fallen towards a support level, reaching back to the lows it last touched during the April “tariff tantrum.”
In 2011, gold cost $1,800 per ounce. It now costs around $4,500. When compared to the money supply, which represents the total stock of dollars circulating in the US economy, including cash, bank deposits and liquid savings, the price has reached a level that has historically acted as a major resistance zone.
To get there, the precious metal is up 70% this year. This is in stark contrast to bitcoin, which is down about 10%. Still, bitcoin continues to reach new highs relative to the US money supply each cycle, with the current support level also marking the previous cycle’s high in March 2024.
