Gold Hits Nine-Month Low as Bitcoin Climbs Amid Hawkish Fed Stance
Gold prices are
wrapping up the week by plummeting to a nine-month low, with the price per ounce descending
to $1,858 on Thursday. Transitioning into Friday, gold is changing hands at
$1,870 per ounce, marking a decline of
2.8% over the trailing five days. Concurrently, bitcoin (BTC) prices leaped on Thursday, and have ascended by
1.5% against the U.S. dollar over the course of the week.
The Fed’s pronounced quantitative tightening coupled
with elevated interest rates is propelling bond yields upward, thereby amplifying the vigor
of the greenback.
Following a prolonged period of inversion,
the spread between long- and short-term yields in bond markets has been reverting, albeit for unsavory reasons.
Economists at ANZ Bank suggest that the charm of gold returns may wane until the
U.S. central bank makes a turn on interest rates. The allure of precious metals is thought to be poised for a resurgence next year, as the analysts at
ANZ Bank forecast a diminishing vigor in the
greenback’s strength.
Amid the descent of gold,
bitcoin’s (BTC) price has ascended, breaching the $27K per unit mark on
September 29.
