Originally published on: September 23, 2024
Amid a United States Federal Reserve interest rates reduction, gold has skyrocketed to a historic peak, sparking speculation about whether Bitcoin will follow suit. Let’s delve into the factors driving these price surges and what experts are predicting for both precious metal and cryptocurrency markets.
Unprecedented Gold Price Surge post Federal Reserve Action
As reported by GoldPrice.org, gold shattered its all-time high, reaching an impressive $2,629 per ounce on September 23. This surge, marking a surge of over 5% in just two weeks, comes on the heels of the Fed’s interest rate slash by 0.5% on September 18. The rate cut breathed new life into the commodity, with investors flocking to gold as a reliable inflation hedge amidst a shifting economic landscape.
Global Uncertainties Propel Gold Demand
Numerous geopolitical tensions, including conflicts between Russia and Ukraine, Israel and Hamas, alongside the upcoming US presidential election, have spurred a heightened interest in gold investments. Moreover, central banks worldwide have ramped up their gold purchases since Russia’s invasion of Ukraine in early 2022, as detailed in a recent report by Goldman Sachs.
Projections and Forecasts for Gold’s Growth
Analysts at prominent financial institutions, like Goldman Sachs, are optimistic about gold’s future trajectory. Predictions suggest that gold prices could reach $2,700 by early 2025, propelled further by potential future Fed rate cuts. Notably, despite its current surge, gold still falls short of its inflation-adjusted peak of $3,200 back in 1980, indicating room for further growth.
Bitcoin’s Rally Mirroring Gold’s Surge
In parallel to gold’s remarkable run, Bitcoin, often hailed as ‘digital gold,’ has also seen a significant uptick in value. With a price surge of 8.5% post the Fed’s rate decision, Bitcoin hit a four-week high of $64,660 on September 23, per CoinGecko data. The crypto market is closely watching whether Bitcoin will continue its upward momentum in tandem with gold.
Expert Insights and Market Predictions
Markus Thielens, CEO of 10x Research, anticipates a potential breakout in the coming months, setting the stage for a new all-time high for Bitcoin as well. Investors are eagerly anticipating the price movements in the crucial October-to-March period, with expectations running high for a significant price surge in both gold and Bitcoin markets.
Stay tuned for more updates on the evolving dynamics of precious metals and cryptocurrencies as global economic conditions and investor sentiments continue to shape market trends worldwide.
