Bank of America strategist Michael Hartnett is advising investors to buy gold as a hedge against rising US debt that could put pressure on the dollar. The recommendation lands as the gold-to-Bitcoin ratio hits a 10-week high, a sign that the oldest haven asset is currently beating the largest cryptocurrency.
Why Hartnett is leaning on gold
Hartnett's call centers on the growing US debt burden. In his view, that debt could ultimately weaken the dollar, making gold a more attractive store of value. The strategist's advice is a straightforward defensive play: when the dollar is at risk, gold tends to benefit.
Reading the XAU/BTC ratio
The XAU/BTC ratio, which tracks the price of gold against Bitcoin, surged to a 10-week high this week. That means gold has outperformed Bitcoin over that stretch. The ratio is a simple way to compare the two assets' relative strength — and right now, it's pointing clearly in gold's favor.
Where the advice comes from
The analysis was published on CoinGape, a cryptocurrency news outlet. While Hartnett's focus is on gold, the timing is notable for crypto investors who view Bitcoin as a hedge in its own right. For now, the market is rewarding the traditional safe haven.
The 10-week high in the XAU/BTC ratio is the latest data point in an ongoing debate over which asset better hedges against fiat currency risk. Hartnett has made his pick.
