Gold is more than 5% higher within two weeks and at a record high due to the rate cuts and geopolitical issues.
Gold records the loftiest price in its entire existence due to the cut of the United States Federal Reserve interest rates, and BTC analysts are also ready with the prognosis of a similar destiny for BTC.
GoldPrice.org reported that the price per ounce of gold rose to $2,629 on September 23, after increasing more than 5% within the past two weeks. The large switch comes after the cut of the Fed interest rate by 0.5% on Wednesday, Sept. 18, which acted as a boost to the metal.
Lowering the interest rates reduces the attraction of assets whose returns are benchmarked from the Fed rates, such as short-term government securities; investors opt for inflation hedges like precious metals, including gold. Civil conflicts such as the one between Russia and Ukraine, Israel and Hamas, and the US election in November have also led to increased demand for gold as an investment asset.
Moreover, global central bank buying of gold has tripled since Russia invaded Ukraine in February 2022, as noted by a Sept. 12 Goldman Sachs report. Analysts at the Wall Street Investment Bank forecasted that gold’s price is likely to surge to around $2,700 per ounce by early 2025 based on additional Fed rate cuts.
But even as that, we have not reached the inflation-adjusted price of $3,200 as experienced in August 1980, according to Peter Boockvar, the chief investment officer of Bleakley Financial Group.
However, the self-claimed gold bug Peter Schiff did not fail to give a dig at digital assets in a post on X on September 23:
“Gold just hit another record high, but few investors notice or care,” he said, adding:
“Most investors are not only ignoring the gains of gold but the essence of it all because of the intense focus on Bitcoin.”
Bitcoin (BTC=) down $63,344, this asset which is popularly known as digital gold has also been on the rise, and since the Fed’s rate decision, it has appreciated by 8.5%.
The asset traded at its intraday and four-week high of $64,660 during early trading on Sept. 23, as per COINGECKO. On September 22, Thielen, the founder and Chief Executive Officer of 10x Research, stated in a note to investors:
“The risks of the major breakout rise closer to the October-March period” before noting that there will be a new all-time high before the end of 2024.
“Bitcoin’s rise in 2024 has again had a seasonal form like the year before that in 2023. This is why traders should anticipate a major breakout, possibly to a new all-time high in Q4 2024.”