Gold has reached a new all-time high of $2,469, driven by renewed optimism about U.S. inflation and the Federal Reserve’s interest rate cuts. This milestone raises the question: can Bitcoin follow suit and record a new high as well?
Since early 2024, both gold and Bitcoin have shown strong performance. Bitcoin has seen returns exceeding 40%, while gold has gained around 20%.
A 20% annual increase is impressive for gold, which usually averages 6-7% per year. This rise indicates growing global concerns about inflation, with investors turning to gold and Bitcoin for protection.
Gold’s new peak at $2,469 marks its highest level ever. This surge reflects increased demand as investors seek stable assets amid economic uncertainties.
Bitcoin has responded and after almost touching $65,000 yesterday, after breaking through the important $64,000 level, it is currently trading at $65,702, good for a 3.3% increase in the last 24 hours.
Important Developments Ahead
The coming days are critical for both Bitcoin and gold as new U.S. macroeconomic data, specifically Retail Sales figures, are expected.
These retail sales numbers will shed light on the state of the U.S. economy. If the figures show a slowdown, it could indicate that inflation is moving towards the desired 2.0% mark, leading to possible interest rate cuts in September.
Goldman Sachs suggests that rate cuts might even occur on July 31, showing their concern about the cooling U.S. economy, labor market, and inflation.
To prevent a recession, Goldman Sachs analysts believe the Federal Reserve might take action this month.