It wasn’t just Bitcoin (BTC) that soared over the weekend. Gold, the safe-haven par excellence, reached an all-time high last night, surpassing $2,100 per ounce. Let’s take a closer look at the reasons behind this historic breakthrough, and what could be in store for the coming months.
Gold just broke its all-time record, reaching $2,100
The breakthrough in the price of gold was sudden: the yellow metal gained +3.5% in the space of half an hour. This took it to a price of $2,146 per ounce, an all-time high reached around midnight last night. This sharp rise was followed by a fall in the hours that followed, with gold trading around $2,060 at midday:
Gold broke its all-time record overnight
The price of Bitcoin (BTC) also surged at the same time, reaching a price not seen since April 2022. Bitcoin, nicknamed “digital gold”, seems to have benefited from the yellow metal’s breakthrough.
How to explain gold’s rise
How then can we explain this interest in gold, and this all-time record? The international context has been highly uncertain in recent months, with the war in Ukraine continuing to unfold, and the war between Israel and Hamas suddenly breaking out. The latter marked the beginning of the buying spree that has driven up the price of an ounce of gold. Gold’s last all-time high came in the midst of the Covid-19 pandemic, another period of uncertainty
Another factor is the slowdown in US inflation since October. As a result, investors believe that the Federal Reserve may cut interest rates. All this has weighed on the dollar, and gold has become cheaper to buy for international investors. This combination of factors pushed the price of an ounce of gold to this all-time high.
This morning, both Bitcoin and gold began a slight decline, but remain above important psychological levels. The coming weeks, and the evolution of the international context, will set the tone for any new records
