Gold and bitcoin rally Wednesday morning after bullion clears $1,800

Gold and bitcoin rallied during Wednesday morning after the precious metal cleared $1,800. 

Gold was trading more than 1.19% higher this morning, continuing the tear it has been on since the beginning of the week. At $1,808, it is currently trading at its highest levels since 2011, which was also the last time it traded above $1,800. Since the beginning of the month, gold is up nearly 6.8%.

It's not exactly clear what's behind the rally, although some market observers have attributed it to risk aversion creeping back into the market. Still, investors are snapping up shares in risk-on assets as well, like technology stocks. 

Meanwhile, bitcoin—which has been viewed as both a potential safe-haven asset and risk-on asset—was also trading higher along with gold. The digital currency is up more than 2% over the last 24-hour, popping around 9:30 a.m. ET.  At last check, it was trading at $9,440 a coin.

Spot gold's surge has been complemented by an increase in inflows to exchange-trading funds tracking bullion, as reported by Bloomberg. 

"A massive investor response to Covid-19 has pushed ETF holdings to record levels, the impact of which has outweighed the decline in jewelry demand and absorbed increases in recycling," James Steel, chief precious metals analyst at HSBC Securities, said in a note to clients. Macro conditions are also driving investors into gold, Steel added. 

"The near unprecedented fiscal and monetary peacetime response to Covid-19 supplies gold with two substantial bullish inputs: liquidity and debt," Steel added.