Gold Reaches Record High as Bitcoin Surges Past $64K in September Rally”

Gold prices have soared to a new all-time high, spurred by a recent interest rate cut from the U.S. Federal Reserve, leading crypto analysts to weigh in on when Bitcoin might follow suit.

On September 23, data from GoldPrice.org showed the precious metal had reached an unprecedented $2,629 per ounce, marking a gain of over 5% in the last two weeks. The Fed’s 0.5% interest rate reduction, announced on September 18, provided a boost to gold, as lower rates diminish the appeal of interest-bearing assets like bonds, turning investor focus toward inflation hedges like gold.

In addition to the Fed’s decision, global geopolitical tensions—including ongoing conflicts such as those between Russia and Ukraine, Israel and Hamas, and the approaching U.S. presidential election—have increased the demand for gold as a safe-haven investment.

Moreover, a Goldman Sachs report from September 12 noted that central banks worldwide have significantly increased their gold reserves, with purchases tripling since the onset of the Russia-Ukraine war in 2022. The report also forecasted that gold could reach $2,700 by early 2025 as further Fed rate cuts are anticipated.

Despite these impressive numbers, Peter Boockvar, the chief investment officer at Bleakley Financial Group, pointed out that gold has yet to surpass its inflation-adjusted peak of $3,200, which it hit in 1980.

Gold advocate Peter Schiff, known for his skepticism toward digital currencies, commented on social media platform X (formerly Twitter), stating, “Gold has hit another all-time high, but few seem to notice as Bitcoin steals the spotlight.” He argued that investors might be overlooking gold’s strong performance in favor of Bitcoin.

Meanwhile, Bitcoin has also been on the rise, gaining 8.5% since the Fed’s rate cut. On September 23, the leading cryptocurrency reached an intraday peak of $64,660, a four-week high, according to CoinGecko.

Markus Thielen, CEO of 10x Research, told investors in a note on September 22 that the likelihood of a significant Bitcoin breakout is increasing as the critical October-to-March window approaches. Thielen predicts Bitcoin could hit a new all-time high by late 2024, continuing its seasonal price patterns observed in previous years.

With both gold and Bitcoin trending upwards, investors may have to carefully consider which asset to back as markets evolve.

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