Gold is shining brightly once more as markets sway and cryptocurrency prices plummet

<p>This year has seen a drop in the value of the stock market. So, too, has bitcoin. Gold, on the other hand, has had a relatively strong start to the year. The yellow metal's price has been relatively stable, hovering just about $1,800 per ounce.</p> <p>Gold prices have risen modestly over the last three months as well. So, will the commodity's ascension gain traction? Could it revert to its all-time high of more than $2,000 during the early stages of the pandemic in the summer of 2020?</p> <p>Gold is sometimes regarded as a good hedge against rising interest rates and inflation since, unlike paper currencies and cryptos, it should, in principle, retain more of its value.</p> <p>According to some analysts, the return of market volatility this year, which has harmed meme stocks and bitcoin in particular, could lead to additional increases for gold.</p> <p>"Cryptos took all the air out of gold last year, and people get into crypto for many of the same reasons as gold," said Robert Minter, director of ETF Investment Strategy at abrdn, saying that bitcoin bulls had argued that cryptos should be a decent hedge against inflation.</p> <p>This year, however, has demonstrated that this is not the case.</p> <p>"Investors are beginning to recognise bitcoin as a more risky asset. It is more of an energy drink than a portfolio diversification tool "Minter was referring to crypto prices' massive highs and similarly massive pullbacks in comparison to gold's significantly more stable swings.</p> <p>Gold is likely to remain a superior bet for investors seeking security from interest rate hikes as the Fed battles rising consumer prices.</p> <p>"There is a lot of inflation hedging going on. Gold and gold miners have done well "Lauren Goodwin, economist and portfolio manager at New York Life Investments, agreed. "Concerns about inflation could cause them to rise. Gold should be part of a well-diversified portfolio."</p> <p>Top miners Newmont and Barrick Gold have been flat this year, moving in lockstep with the price of go