Gold finds itself at a pivotal point when compared to the U.S. money supply (M2SL), approaching a level not seen since 2011 and not surpassed since the 1970s, when its price surged to a then-record $700 an ounce over several years.
Conversely, bitcoin , often dubbed digital gold, has dipped toward a support level, revisiting the lows last seen during the “tariff tantrum” in April.
In 2011, gold was priced at $1,800 an ounce, and it now hovers around $4,500. When plotted against the money supply, which encapsulates the total stock of dollars in the U.S. economy—including cash, bank deposits, and liquid savings—the price has reached a historical resistance zone.
To achieve this, the precious metal has soared 70% this year, sharply contrasting with bitcoin, which has decreased by about 10%. Nevertheless, bitcoin continues to set new highs relative to the U.S. money supply each cycle, with the current support level coordinating with the prior cycle peak in March 2024.
