Gold has reached an unprecedented price following a recent interest rate cut by the United States Federal Reserve, leading crypto analysts to speculate on when Bitcoin might experience a similar surge.
As reported by GoldPrice.org, the price of gold soared to a historic high of $2,629 per ounce on September 23, marking an increase of over 5% in just two weeks. This significant rise came after the Federal Reserve lowered interest rates by 0.5% on September 18, creating favorable conditions for the precious metal.
Lower interest rates tend to make investments linked to Fed-set rates, such as short-term government bonds, less appealing. Consequently, investors are turning to inflation hedges like gold for diversification.
Gold price over the last month. Source: goldprice.org
In addition, heightened global geopolitical tensions—including the ongoing conflicts between Russia and Ukraine, as well as Israel and Hamas, alongside the imminent U.S. presidential election in November—have intensified interest in gold investments. A report from Goldman Sachs on September 12 noted that the amount of gold purchased by central banks globally has tripled since Russia’s invasion of Ukraine in early 2022.
Analysts at Goldman Sachs forecast that gold prices could reach $2,700 per ounce by early 2025, supported by additional rate cuts from the Federal Reserve.
However, Peter Boockvar, chief investment officer at Bleakley Financial Group, pointed out that gold has yet to surpass its inflation-adjusted peak price of $3,200 from 1980.
Despite this, gold enthusiast Peter Schiff took the opportunity to critique digital assets in a post on X on September 23. He remarked, “Gold just hit another record high, but few investors notice or care,” before noting that Bitcoin (BTC), often labeled as digital gold, has also seen a rise, climbing 8.5% since the Fed’s decision.
During early trading on September 23, Bitcoin reached an intraday and four-week high of $64,660, as reported by CoinGecko.
BTC/USD over the past month. Source: TradingView
In relation to this, 10x Research founder and CEO Markus Thielen noted in a message to investors on September 22 that “the likelihood of a major breakout increases as we approach the critical October-to-March period,” predicting a potential new all-time high for Bitcoin before the end of 2024.
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