Gold hit another all-time high of $2,586.16 an ounce today, adding more than $80 (or 2.8%) for the week to post its strongest weekly performance since 2020. Market analysts expect that factors such as monetary easing by major central banks and uncertainty about the U.S. presidential election will push gold prices above $3,000 next year. What about Bitcoin? (Preliminary summary: Gold has reached a new high! Benefiting from European interest rate cuts and the Fed's expected water release...what about Bitcoin?) (Background supplement: While Bitcoin fluctuated by 60,000, gold hit a "historical high" of $2,509. The digital gold narrative has no chance. (?) Affected by factors such as market expectations that the U.S. Federal Reserve will cut interest rates next week, increased demand for safe havens, and large-scale gold purchases by the central bank, the price of gold has continued to rise. It has increased by more than 25% this year, and it once again set a new record high today. It touched US$2,586.16 per ounce and finally closed at US$2,578.71, a one-day increase of 0.78%. Gold is up more than $80 (or 2.8%) this week, notching its strongest weekly performance since 2020. Gold Price Chart Expectations of a Fed rate cut next week push up gold prices Bullish sentiment is running high as gold hits record highs, with investors closely watching whether gold can rise 16% to the $3,000 mark this year and next. Citi analysts say monetary easing by major central banks and uncertainty over the U.S. presidential election will push gold prices above $3,000 next year. On Thursday, the European Central Bank (ECB) cut interest rates by one point as expected, and the latest economic data from the United States further strengthened market expectations for the U.S. Federal Reserve (Fed) to cut interest rates on September 18. According to the latest data from the FedWatch tool, the market has a 50-50 chance of a 1-digit and 2-digit rate cut from the Fed. If the rate cut comes true, it would be the first time the Fed has cut interest rates since 2020. Since gold itself does not earn interest, interest rate cuts will reduce the opportunity cost of holding gold, thus making it more attractive to investors. In addition, when interest rates fall, it affects the attractiveness of fixed-income assets such as bonds, making gold more attractive to investors. Analysts at Commerzbank said: The market still expects the Fed to cut interest rates by about 100 basis points before the end of the year, which means it will have to cut interest rates by 50 basis points in one of the two remaining meetings after September.Therefore, gold prices may be rising on expectations of aggressive rate cuts in the coming months. Multiple factors support gold prices. In addition, gold's strong performance is also affected by multiple factors such as the fall of the U.S. dollar and rising demand for safe havens. The dollar fell to 140.845 yen yesterday, hitting its lowest level this year, further fueling investor interest in gold. In addition, rising demand for safe havens remains an important driver of gold prices. In terms of geopolitical risks, the Russia-Ukraine conflict and continued tensions in the Middle East have prompted investors to turn to gold as a safe-haven asset. This week, the number of people claiming initial unemployment benefits in the United States was higher than expected, and the Producer Price Index (PPI) increased by 0.2% monthly in August, slightly higher than the 0.1% expected by economists, further stimulating market expectations for a future economic recession. Worry. Bob Haberkorn, senior market strategist at RJO Futures, believes that against the backdrop of increased economic uncertainty, gold’s status as a wealth preservation tool will be further consolidated. Although there are many factors supporting the price of gold, we also need to be wary of the market falling back at any time. After all, from the perspective of technical analysis, the relative strength index (RSI) of gold price is currently 69, which is close to the "overbought" area starting from 70. Does Bitcoin have a chance to reach new highs? On the other hand, although Bitcoin is hailed as digital gold, it has been criticized for not being as good as gold in its hedging function. CryptoQuant recently published an analysis saying that in the current risk-averse environment, investors seem to prefer traditional safe-haven assets such as gold rather than Bitcoin. The correlation between the two has also continued to decline recently, and Bitcoin is currently more affected by the overall economy and the US stock market. With the Federal Reserve expected to begin cutting interest rates next week, it remains to be seen whether the new liquidity will flow into Bitcoin. Related reports Gold is approaching a record high of $2,480! The demand for safe havens has increased sharply. Will Bitcoin skyrocket next? Has Bitcoin lost its safe-haven aura? The reason why BTC failed to follow gold’s rise amid the turmoil: The crash is coming! Gold tycoon Peter Schiff: Market expectations for an interest rate cut have become a bubble. "The Federal Reserve should raise interest rates." Bitcoin cannot be used as a U.S. reserve. 〈Gold surged 80 mg to hit a record high! Will the Fed cut interest rates to exceed $3,000? When will it be Bitcoin’s turn? This article was first published in BlockTempo’s “DongZu DongTen-The Most Influential Blockchain News Media”.

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