Gold prices soar after Fed rate cut announcement… up about 28%
Recorded at $2,648 per ounce… Experts’ outlook is ‘rosy’
"Hedging Asset BTC Renews Highest Price of the Year Along with Gold"
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After the Federal Reserve announced a 50bp interest rate cut on the 18th, the dollar index plummeted and the price of gold, a 'safe asset', rose by about 28% on the 24th.
The outlook surrounding the soaring gold price is extremely bright. Goldman Sachs predicted in its own report published on the 24th that the price of gold will reach $2,700 per ounce in early 2025.
Reuters analyzed that "as the value of currencies falls, the value of gold as a hedge is soaring," and that "uncertainty due to political conflicts in the Middle East and other regions has also affected investors' interest in gold." It continued, "As geopolitical instability continues, demand for safe assets such as gold will continue."
With the outlook for gold looking very bright, there are predictions that 'digital gold' Bitcoin will also follow gold's lead and hit an all-time high.
Crypto Briefing, a cryptocurrency media outlet, reported on the 25th that "many cryptocurrency experts are predicting that Bitcoin will follow gold," and "there are quite a few opinions that predict that Bitcoin will break the record high it set in March of this year before the end of the year."
The basis of Bitcoin optimism, following gold, is also the demand for hedging assets due to the uncertain macroeconomic situation. Crypto Briefing emphasized that "both gold and Bitcoin will see great demand as major means of protecting against inflation in uncertain times."
Reporter Kwon Seung-won ksw@
