Coinspeaker Gold Follows Bitcoin Price Rally to New Record Highs, Will Momentum Continue?
The gold price has been hitting new highs following the Fed rate cut last week while following the Bitcoin BTC $63 505 24h volatility: 1.3% Market cap: $1.25 T Vol. 24h: $26.12 B price trajectory recently. Over the past week, the BTC price has surged over 8.5% moving all the way to $64,000.
On the other hand, the gold price touched a record high of $2,629 per ounce on September 23. Within the last 15 days, the yellow metal has registered strong 5% gains. The major boost comes following the 50 bps rate cut by the Federal Reserve which served as the tailwind for the yellow metal.
A decrease in interest rates diminishes the appeal of assets linked to Fed-determined returns, like short-term government bonds, while making inflation hedges, such as gold, a more attractive option for diversification.
Furthermore, the appetite for gold investments has been growing recently amid rising geopolitical risks such as the ongoing wars between Russia and Ukraine, Israel and Hamas. On the other hand, the uncertainty around the 2024 US elections is also another factor contributing to this.
Furthermore, banking giant Goldman Sachs recently reported that the gold purchases by central banks have tripled following the last two years of the Russia-Ukraine war. With more Fed rate cuts expected this year, Goldman Sachs researchers predict that the gold price will surge to $2,700 by early next year.
Gold Rally Isnât Ending Anytime Soon
Peter Boockvar, chief investment officer at Bleakley Financial Group, noted that gold has yet to surpass its inflation-adjusted peak of $3,200, set in 1980. Meanwhile, gold advocate Peter Schiff took the opportunity to criticize digital assets in a post on X on Sept. 23. Schiff noted:
âGold just hit another record high, but few investors notice or care. With so much attention focused on Bitcoin, investors are not only missing out on goldâs gains but the significance of the rise.â
On the other hand, Bitcoin is also showing strength gearing up for a mega rally moving ahead in Q4 2024. 10x Research founder and CEO Markus Thielen noted that the chances of a major breakout increase as we approach the October-to-March period.
âBitcoinâs 2024 performance has once again followed its seasonal pattern â just as it did in 2023. This is why traders should anticipate a major breakout, potentially reaching new all-time highs in Q4 2024,â he added.
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Gold Follows Bitcoin Price Rally to New Record Highs, Will Momentum Continue?
