Gold prices log a fifth straight rise as a drop in bitcoin supports the metal

Gold futures climbed Wednesday, extending their rally to a fifth straight session, with a drop in bitcoin prompting investors to seek refuge in the precious metal. This year, bitcoin and cryptocurrencies saw much more investment demand and retail participation than gold, but Wednesday’s plunge in cryptocurrencies “wiped-out some of the short-term traders,” said Chintan Karnani, director of research at Insignia Consultants. “These wiped out traders have sought refuge in gold,” he said. Investors also awaited the release of minutes from the Federal Reserve’s April meeting, due out shortly, for clues on how the central bank will address evidence of pricing pressures in the economy. June gold added $13.50, or 0.7%, to settle at $1,881.50 an ounce, with prices for the most-active contract ending at their highest since Jan. 7, according to FactSet data.

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