Gold, often considered a reliable indicator of stable currency, surged by 1% on Monday to reach a new all-time high, marking a remarkable 43% increase in 2025.
Currently priced at $3,721 per ounce, the precious metal experienced an upturn shortly after bitcoin’s value dropped by 3%, falling to $112,000. Bitcoin is viewed by some as a modern form of stable currency. This drop brought its year-to-date gain down to 17%. Interestingly, there seems to be a potential trend where profits from bitcoin sales are being reinvested into gold.
While gold and bitcoin usually do not follow the same trajectory in terms of price movements, there are occasional instances when both assets experience simultaneous increases or decreases with slight delays. However, this time around their paths have diverged significantly.
Besides gold’s impressive performance, silver also saw gains on Monday with an increase of 1.5%, reaching nearly $44 per ounce – its third-highest level since 1975. Silver has now recorded over a 50% surge in value since the beginning of the year.
Following the Federal Reserve’s decision to reduce interest rates by 25 basis points on September 17th., both gold and the S&P500 index have risen approximately by about one percent each. Concurrently with these rises though is an increase in U.S Treasury yields; notably,the U.S.10-year yield stands at4 .125 % (up2 .5 %) whiletheU.S .30-year yieldisat4 .7 %(up2%).
The U.S dollar has strengthened as well – indicatedbya1 % riseintheDXYindex,to97 .5.A stronger dollar typically exerts pressure on risky assets,andbitcoinhas seenitsvalue decreasebyover3 .5%sincetheFed’sannouncementofinterest rate cuts.
