Peter Schiff is declaring that the correction in gold is clearly over and expects the precious metal to soon move back above $5,000. According to ET Now, Schiff made these comments while gold was trading at around $4,412 an ounce, stating that the metal had regained strength during Asian trading hours. The correction had begun when the Iran war broke out, but Schiff has previously argued that the decline was a buying opportunity rather than the end of the broader gold bull run. As reported by Bloomberg, gold fell the most in more than two weeks as renewed US-Iran hostilities and comments from Fed Governor Christopher Waller raised expectations of possible interest rate hikes. The metal slid as much as 3.2% to trade below $4,000 an ounce, the largest intraday drop since June 24.
Gold traded at $4,381.60 per ounce as of 6:05 am Wednesday, gaining 0.3% and remaining elevated for the second consecutive session. Over the past year, the metal has climbed roughly 29.6%. Silver moved to $65 per ounce, gaining 0.5% or $0.30 to trade around the same level. As reported by ET Now, the precious metal has remained elevated for the second consecutive session, hovering around the $4,300 mark. In the domestic Indian market, gold was trading 0.68% higher at ₹1,54,812 per 10 grams on MCX, while silver was up 1.65% at ₹2,39,545 per kg. The weakness in the US dollar provided additional support, with the US Dollar Index trading at 99.81.
Bitcoin traded at $64,170, gaining just 0.5% in 24 hours with a market cap of nearly $1.31 trillion. According to Schiff's analysis, Bitcoin gained little from the same repricing that benefited gold and silver, which he reads as structural rather than temporary. He notes that when gold initially broke out, Bitcoin broke down, and when gold corrected, Bitcoin bounced. Now that gold's correction is over and gold is back in rally mode, Bitcoin has resumed its decline. At the time of writing, Bitcoin's price is sitting at $64,170. Crypto leaders offer a very different take, arguing that digital assets provide practical utility far beyond physical metals. The continued divergence between gold's strength and Bitcoin's weakness supports Schiff's thesis that money is rotating back toward hard assets.
MicroStrategy sold 1,690 BTC last week for $108.6 million, averaging $64,262 per coin net of fees. The company then used proceeds to buy back STRC shares and raised $653.1 million from 6.59 million common shares. As reported by Schiff, the company's dollar reserve hit $4.65 billion as of August 9, while holdings slipped to 840,447 BTC. The sale price sits far under the company's average cost of $75,385 per coin, locking in losses on disposals. However, analysts say this large cash cushion protects the company from forced sales during price drops. The firm has made only five BTC sales since 2022 but collectively has suffered $102 million in realized losses.
Not everyone agrees with Schiff's interpretation of the divergence. Gordon Grant, portfolio manager and head of derivatives at Bitwise, frames Bitcoin's digital gold test around adoption by sanctioned states rather than price action. According to Grant, the parallel movements of gold's advance and MicroStrategy's selling now run in parallel, with whether they stay linked depending on the Federal Reserve's next move and how much cash Saylor still needs to raise. At the same time, Coinbase (COIN) CEO Brian Armstrong publicly defended the market, arguing that "crypto doesn't get enough credit for the financial access it's already unlocked for the world." Recent market developments show hedge funds flipping net long on Bitcoin futures via CME, which CryptoQuant's Ki Young Ju calls a 'rare' bullish signal for Bitcoin. However, this positive sentiment was temporarily overshadowed by renewed oil price rises that caused brief dips below $64,000.
