Gold has achieved a historic milestone, reaching a new inflation-adjusted record high above $3,635 an ounce for the first time since the 1980s. This surge is fueled by a "dream setup" of persistent inflation and expectations of future Federal Reserve rate cuts.
Gold's Momentum
The precious metal's recent climb is a direct response to a hotter-than-expected August CPI report, which saw inflation tick up to 2.9%. Central banks, particularly in emerging markets like China and India, are actively increasing their gold reserves to hedge against inflation and reduce their dependence on the US dollar. A weakening dollar and ongoing global geopolitical instability have further strengthened gold's appeal as a safe-haven asset.
Bitcoin's Trajectory
While gold takes the spotlight, Bitcoin, often called "digital gold," is positioned to follow a similar path. Historically, both assets have moved in tandem during periods of economic uncertainty. Although Bitcoin is currently consolidating around $114,600 while gold climbs, some analysts believe a breakout is imminent. A recent $2 billion liquidity injection from Tether and the prospect of rate cuts could provide the catalyst for Bitcoin's next major price rally.
Ultimately, gold is leading the charge, but market watchers suggest it may only be a matter of time before Bitcoin follows suit, potentially outperforming gold once it gains momentum.
September 2025, Cryptoniteuae