Gold Sets New All-time High Amid Bitcoin Rally

Gold has reached its highest price ever following a recent interest rate cut by the United States Federal Reserve, and crypto analysts are now speculating when Bitcoin might experience a similar rise.

According to GoldPrice.org, the price of gold surged to a record high of $2,629 per ounce on September 23, marking a gain of more than 5% over the previous two weeks.

This major movement in gold prices follows the Fed’s decision to lower interest rates by 0.5% on September 18, providing a boost to the metal.

Lower interest rates tend to make assets like short-term government bonds, which have returns tied to Fed-set rates, less appealing, while inflation hedges such as gold become more attractive for diversification.

Global geopolitical tensions, including the ongoing conflicts between Russia and Ukraine, Israel and Hamas, along with the upcoming U.S. presidential election in November, have further driven demand for gold investments.

Additionally, global central bank purchases of gold have tripled since Russia’s invasion of Ukraine in early 2022, as highlighted in a September 12 report by Goldman Sachs.

Goldman Sachs researchers forecast that gold could reach $2,700 by early 2025, supported by additional Fed rate cuts.

However, Peter Boockvar, chief investment officer at Bleakley Financial Group, pointed out that gold’s inflation-adjusted price still remains below its peak of $3,200, set in 1980.

Meanwhile, gold enthusiast Peter Schiff took the opportunity to criticize digital assets in a post on X (formerly Twitter) on September 23, stating:

“Gold just hit another record high, but few investors notice or care,” adding that:

“With so much attention focused on Bitcoin, investors are not only missing out on gold’s gains but the significance of the rise.”

Bitcoin, often called digital gold, has also seen an increase, climbing 8.5% in value since the Fed’s rate cut.

The cryptocurrency reached an intraday and four-week high of $64,660 in early trading on September 23, according to CoinGecko.

In a note to investors on September 22, 10x Research founder and CEO Markus Thielen noted:

“The likelihood of a major breakout increases as we near the pivotal October-to-March window,” predicting a new all-time high before the end of 2024.

He added, “Bitcoin’s 2024 performance has once again followed its seasonal pattern—just as it did in 2023. This is why traders should anticipate a major breakout, potentially reaching new all-time highs in Q4 2024.”

Sources:

https://cointelegraph.com/news/gold-price-hits-all-time-high-next-for-bitcoin

https://www.goldmansachs.com/insights/articles/gold-prices-forecast-to-climb-to-record-high

https://goldprice.org/inflation-adjusted-gold-price.html

https://x.com/PeterSchiff/status/1838054295863791807

https://mail.10xresearch.co/p/bitcoin-set-to-smash-new-all-time-highs-in-q4-2024