ALBAWABA – Gold and Bitcoin have both surged to hit record highs as investors anticipate the US Federal Reserve to start cutting on interest rates by June, with no end in sight for the escalations in the Middle East and Bitcoin halving looming closer.
Spot gold XAU was up 1 percent towards $2,136.69 per ounce and US gold features hiking a 0.9 percent to $2,145.40 per ounce, records not seen since gold hit $2,135.40 on Dec. 4 as reported by Reuters, as investors seek the safe-haven asset amidst Israeli war on Gaza and potential FED interest rate cuts.
Gold is seen as a safe-haven for financial assets in times of geopolitical tensions such as the current escalating Israeli attacks on Gaza causing global trade disturbances, as well as highly expected interest rate cuts in June, pushing traders to stock up on Gold, which analysts according to The Guardian believe would reach over the $2,300 price point.
While Bitcoin surpassed the $69,000 milestone to trade at an all-time-high price point of $69,200 according to Financial Times, during its ongoing bullish run mainly caused by US approval of Bitcoin exchange-traded funds (ETFs) and an anticipated halving of the cryptocurrency soon.
Bitcoin Halving is an automated process by the Blockchain network, which cuts the reward for each Bitcoin mined by half every four years to drive the price of the coin as it lowers mining reward while limiting coin supply, with the last halving happening in 2020 causing an upwards turn towards breaking $62,000 mark, next halving is expected around April.
