Following a 5% increase over the past two weeks, the price of gold climbed to an all-time high of $2,629 per ounce on Sept. 23, GoldPrice.org reports.
The U.S. Federal Reserve’s move to lower interest rates by 0.5% on Sept. 18 preceded this unprecedented climb. Traditional assets such as short-term government bonds have lost appeal due to declining interest rates, forcing investors to hunt inflation hedges like gold.
Several global elements have contributed to rising demand for gold. Continuous geopolitical conflicts, such as wars between Russia and Ukraine, Israel and Hamas, and anxiety about the upcoming U.S. presidential election in November, have drawn investors to the security of gold.
Bitcoin Market Trends
Furthermore, following Russia’s invasion of Ukraine in early 2022, central banks around the world have greatly raised their gold purchases, increasing the number of purchases, according to a Goldman Sachs analysis released on Sept. 12.
Driven by possible Federal Reserve rate cuts, Goldman Sachs Wall Street analysts estimate that gold prices could reach $2,700 by early 2025. Despite this record climb, Peter Boockvar, Chief Investment Officer of Bleakley Financial Group, notes that gold has not yet surpassed its inflation-adjusted peak of $3,200, reached in 1980.
“Gold just hit another record high, but few investors seem to notice or care,” he said, adding:
“With so much attention focused on Bitcoin, investors are not only missing out on gold’s gains but the significance of the rise.”
The surge in gold has also sparked discussion about digital assets such as Bitcoin, which is sometimes referred to as “digital gold.” Rising by 8.5% on September 23, Bitcoin reached an intraday high of $64, 660—its highest amount in four weeks. This increase came quite quickly after the Fed’s interest rate ruling.
With Markus Thielen, CEO of 10x Research, projecting in a note to investors that bitcoin might reach a new all-time high before the end of 2024, crypto researchers are hopeful about the future of the cryptocurrency. According to Thielen, the October-to-March period is probably the crucial window for a significant Bitcoin breakout.
“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.”
