Gold Breaks All-Time Record as Bitcoin Rises 7% in September Ahead of Economic Decline

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Bitcoin is aiming for a new all-time high as gold hits its own record today, up 28% in 2024 and on track for its best year since 1979. While the US Federal Reserve continues to push for a “soft landing ”, the rise of gold. may signal a different outlook for the economy.

Following the Fed recent interest rate cut up 0.5% on September 18, gold rose to a record $2,648 an ounce today on a weaker US dollar and rising global geopolitical tensions.

As the US dollar index ($DXY) weakens and interest rate cuts take place, the weaker dollar has made gold more attractive to foreign investors. These conditions mirror those of the 2008 financial crisis, with gold rising as a safe haven amid growing economic uncertainty.

Gold’s rise reflects concerns among investors, many seeking safe havens amid growing economic uncertainty. With US government spending at 43% of GDP – equal levels seen during the 2008 crisis – gold has become a hedge against inflation and instability.

The geopolitical landscape, with ongoing conflicts in Ukraine, Israel and the upcoming US presidential election, has further fueled demand for gold. Central banks, in particular, have tripled their gold purchases since the start of the Ukraine war, according to a Goldman Sachs document. report predicts that gold could reach $2,700 by early 2025.

Meanwhile, Bitcoin, often referred to as “digital gold”, has also experienced significant growth, rising 6% since the Fed’s rate decision and 7% in September alone – historically the month with the most poor performance of Bitcoin.

Crypto analysts predict that Bitcoin could follow gold, with some forecasting a potential all-time high for Bitcoin before the end of 2024, positioning both assets as key inflation hedges in uncertain times.

This rally in both gold and Bitcoin comes at a time when Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell continue to express confidence in achieving a “soft landing.” Gold’s surge, along with Bitcoin’s rise, reflects growing market skepticism about the Fed’s ability to stabilize the economy, signaling that this is far from a “soft landing.”

The combination of economic instability, a weakened currency and expansive government spending suggest a long road ahead for the US economy. Investors are increasingly turning to gold and Bitcoin as safe havens amid concerns that the Fed’s actions may not be enough to pull the country out of troubled waters.

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