Gold Nears ATH Again as Bitcoin Hits Historic Low—Rotation Ahead?
Gold prices edged higher on Tuesday, trading at $4,305 per ounce—within striking distance of October’s all-time high of $4,381.
The rally reflects a broader flight to safety as investors navigate uncertain monetary policy and seek inflation hedges. With markets pricing in a 76% chance of another rate cut in January, gold’s appeal as a non-yielding asset has only strengthened.
Historic Divergence Signals Potential Turning Point
The US dollar, near a two-month low during the Asian session, provided additional tailwinds for bullion. Gold has surged more than 64% year-to-date, marking its best annual performance since 1979. Federal Reserve rate cuts, persistent central bank buying, and steady inflows into gold-backed ETFs fueled the hike.
Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council, underscoring sustained investor appetite for the safe-haven asset. As rates decline, the opportunity cost of holding gold falls, making it more attractive compared to interest-bearing investments
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