Even after the U.S. headline and core consumer price inflation rose in the month of October, the Gold spot (NASDAQ:XAU) prices fell to a two-month low and have been hovering in the same range. Key ETFs that track gold, have also taken a beating.

This comes amid a rise in Bitcoin‘s (CRYPTO: BTC) prices which is currently trading at above $90,000 a coin after President-elect Donald Trump‘s victory.

Also read: Peter Schiff: US Bitcoin Reserve Could ‘Destroy Dollar,’ Predicts It’s ‘Highly Unlikely’ To Happen

What Happened: Gold spot prices were trading at $2,547.42 per ounce, as of 6:06 a.m. EST, which is the lowest since Sept. 11. Even though bullion is used to hedge inflation the prices of gold hovered around the two-month low levels despite the increase in the U.S. headline and core CPI data. The prices declined nearly 8% from the record high that it scaled on Oct. 31. The surge in the U.S. dollar also weighed on the precious yellow metal.

Prominent Gold ETFs have also declined as the gold spot prices have fallen. According to Benzinga Pro, Franklin Responsibility Sourced Gold ETF (ACRA: FGDL) declined by 1.19%, whereas the SPDR Gold MiniShares Trust (ACRA: GLDM) was down by 2.5%. Also, iShares Gold Trust Micro Shares (ACRA: IAUM) declined by 2.57% as of 6:06 a.m. EST.

Economist Peter Schiff, however, continues to be bullish on gold because he thinks CPI will surge as used car prices in the U.S. will start falling and the Federal Reserve won’t hike rates again.

“Rising bond yields and sticky inflation continue to weigh on gold. Traders believe this combination is bearish for gold as it will sideline future rate cuts. The problem is that CPI numbers will soon surge as used car prices stop falling. The Fed won’t hike. Gold will surge.”

Also read: Peter Schiff Says He Would Have ‘Loaded Up’ On Bitcoin Had He Known That The BTC Bubble Would ‘Get This Big’

Simultaneously, Bitcoin (CRYPTO: BTC) has been scaling new highs as it surpassed Silver (NASDAQ:XAG) to become the eighth most valuable asset globally, with a market capitalization of $1.79 trillion.

Bitcoin prices have surged dramatically, adding over $300 billion to its market capitalization in just two weeks. This meteoric rise has pushed Bitcoin’s total value above both silver and Meta in terms of market capitalization, according to usagold.com. The rally has been attributed to multiple factors, including Trump’s recent election victory, increased institutional adoption and the evolving regulatory landscape.

Why It Matters: Trump during his pre-election campaign promised the launch of a strategic national crypto stockpile if elected for a second term. He also said that the U.S. government will maintain its Bitcoin holdings that it has amassed from seizing the assets of financial criminals, during a conference that he addressed in Nashville in July. These promises have led to the rise in crypto prices since his victory last week and the cryptocurrency market capitalization has hit a record $3.2 trillion.

Earlier this week on Tuesday, Schiff took to X (formerly Twitter) to encourage traders to invest in silver over bitcoin as gold prices fell.

Image via Shutterstock