Gold hits new high as Bitcoin rallies to month high at above $64K
|The price of gold has reached its highest-ever level following a United States central bank interest cut, and crypto analysts are now sharing their predictions on when Bitcoin could follow suit.
According to GoldPrice.org, the price of gold hit a record high of $2,629 per ounce on Sept. 23, following a gain of more than 5% over the past fortnight.
The commodity's big move follows a Federal Reserve interest rate cut of 0.5% on Wednesday, Sept. 18, which provided a tailwind for the metal.
A reduction in interest rates makes assets with returns tied to the Fed-set rates, such as short-term government bonds, less attractive, and inflation hedges, such as gold, a popular diversification option.
Gold price over the last month. Source: goldprice.org
Global geopolitical risks, such as the ongoing wars between Russia and Ukraine, Israel and Hamas, and the upcoming US election in November, have also boosted the appetite for gold investments.
Additionally, the volume of global central bank purchases of gold has tripled since Russia invaded Ukraine in early 2022, according to a Sept. 12 Goldman Sachs report.
Researchers at the Wall Street investment bank predicted that gold prices will reach $2,700 by early next year, buoyed by further Fed rate cuts.
However, according to Peter Boockvar, chief investment officer at Bleakley Financial Group, gold still has not topped its inflation-adjusted price, which peaked at $3,200 in 1980.
Nevertheless, gold bug Peter Schiff couldn’t resist taking a dig at digital assets in a post on X on Sept. 23.
“Gold just hit another record high, but few investors notice or care,” he said before adding:
With so much attention focused on Bitcoin, investors are not only missing out on gold's gains but the significance of the rise.
Bitcoin (BTC $63,546), often referred to as digital gold, has also been rising, with an 8.5% rise since the Fed rate decision.
The asset reached an intraday and four-week high of $64,660 during early trading on Sept. 23, according to CoinGecko.
BTC/USD over the past month. Source: TradingView
In a note to investors on Sept. 22, 10x Research founder and CEO Markus Thielen said “The likelihood of a major breakout increases as we near the pivotal October-to-March window,” before predicting a new all-time high before the end of this year.
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.
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