Gold prices have surged over 2% in the last week, reaching a new all-time high driven by increasing global demand for safe-haven assets and expected rate reductions from major central banks, while Bitcoin is also rising, surpassing $67,000.
As per data from Trading Economics, gold’s price reached $2,700 per ounce on October 18, marking a new record. Over the past week, gold has increased by 2.08%, and nearly 5% over the past month.
This increase in gold prices is attributed to a heightened demand for secure assets and anticipated interest rate cuts by key central banks. The European Central Bank has lowered rates for the third time this year, bringing the deposit rate down to 3.25%.
The ongoing conflict in the Middle East has also impacted gold prices, particularly following the announcement by the Israeli military on October 17 regarding the elimination of Hamas leader Yahya Sinwar, which has raised concerns about possible regional escalation.
In parallel, Bitcoin (BTC) has also seen a remarkable rise, with BTC prices on the upswing since October 10. According to data from crypto.news, Bitcoin surged by 11% in the past week and briefly hit a two-month high of $68,375 on October 16.
Charles Edwards, co-founder of crypto asset manager Capriole Investments, noted the correlation between the upward trends of Gold and Bitcoin.
“As a rough rule of thumb, macro Bitcoin trends often lag behind gold by a few months. Looks promising,” Edwards remarked in his X post.
In recent times, investors have pointed out the parallels between the price movements of Gold and Bitcoin. This likeness arises mainly because both assets have a limited supply and are not pegged to any single country’s currency, thus providing investors with a “safe-haven” that shields them from the fluctuations of national currencies.
Consequently, Bitcoin has often been referred to as “digital gold”, and now a real-world assets platform, Swarm Market, has enabled the minting and trading of physical gold on the Bitcoin blockchain through the Ordinals protocol.
On October 17, Swarm Market disclosed a collaboration with OrdinalsBot that allows individual satoshis to be inscribed with unique gold kilobar serial numbers, making it possible to trade gold bars on Bitcoin’s Ordinals protocol.
This partnership will see Gold become the first real-world asset available on Trio, a marketplace being developed by OrdinalsBot, which is expected to launch by the end of the year.
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