The cryptocurrency market is rallying hard this week after Bitcoin climbed above the $63,000 mark on Wednesday. The digital assets sectors experienced an influx of new investments after the SEC approved the Bitcoin ETF early this year. The development propelled Bitcoin to skyrocket and now, the gold prices are following suit as the XAU/USD chart hit $2,055.
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Gold prices are rallying similar to Bitcoin this week making the precious metal reach a new weekly high. The commodity market is gaining significantly while the forex market, mostly the US dollar is heading south. In this article, we will highlight why gold prices went north and how can it go in March 2024.
After Bitcoin, Why Are Gold Prices Rising?
The price of gold hit $2,055 and is up nearly 11 points in the 24-hours day trade. Gold also spiked 0.5% since yesterday and is displaying extreme bullish sentiments similar to Bitcoin. Gold prices remain bullish this week as investors firmly believe that the Federal Reserve interest rate cut remains on the table for June.
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The anticipation for a new round of rate cuts during Q3 this year is driving gold prices up. The expectations of a rate cut stem after the CME FedWatch tool reported that the Federal Reserve could initiate a rate cut of 25 basis points (bps) in June. For the March and May meetings, investors see interest rates remaining unchanged.
The precious metal turned bullish after the CME Fed Watch tool report making it hit a new high this week. Read here for a realistic price prediction on how high gold prices could reach in 2024.
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Bitcoin and gold are currently the top-performing assets delivering investors handsome returns in the first two months of 2024. Here’s a price prediction on how high or low the leading cryptocurrency Bitcoin could trade this year.