2024-03-07 19:59:27
Gold, or the so-called yellow metal, began a “rocket” rise in its price almost since the beginning of the “October 7” war on Gaza, or perhaps even further than that since the beginning of the Russian war on Ukraine… In fact, by the end of the year 2023 and the beginning of this year, it is almost The price of an ounce of gold is regarding $2050 and from there it continues to rise.
Yes, the price of gold may have started to rise due to wars and crises, but it is directly linked to the American banking crisis and the rise and fall in interest rates. There is no doubt that there is a relationship between the dollar and gold. If the conditions of the American economy improve and the bank adopts a policy of monetary tightening and raising interest, this may cause support for the dollar and investors away from other currencies such as the yellow metal, i.e. gold. Also, with the improvement of economic conditions in the country, bond yields will rise. It is also an indicator of the possibility of higher inflation.
In this context, economic expert Michel Fayyad points out that “gold is recording its highest level in three months with rising expectations of lowering interest rates,” pointing out that “the price of gold reached its highest level in three months this week, due to increased bets on lowering interest rates.” Last June, the Federal Reserve Bank, i.e. the US Federal Reserve, expected that “the price of gold would reach $2,150 per ounce.”
Digital currencies, such as the yellow metal, are also witnessing a rise in price, and “Bitcoin” is one of them, which is a digital currency secured by encryption. It is used in payment operations that are not subject to government supervision. The price of Bitcoin in 2010 reached regarding 0.003 cents per currency, and in October In early 2017, its price rose to 4,200 US dollars – although this value witnessed fluctuations, with frequent and fluctuating daily movements.
“The rise in Bitcoin is due to several factors, the first of which is a change in legislation related to the stock exchange.” This is what Fayyad confirms, pointing out in Al-Nashra that “On January 10, the US financial markets supervisory authority, the Securities and Exchange Commission (SEC), approved investment funds (ETFs) whose value is indexed with the value of the Bitcoin currency, and an example of this is : Blackrock, the world’s first asset management company,” considering that “this allows a larger number of people to put cash into cryptocurrency and the massive influx of real money inflates the value of Bitcoin,” adding: “After that, its price was boosted by bank expectations.” The US Federal Reserve (FED) and other major central banks, and lowering interest rates this year have reduced the attractiveness of the dollar and US Treasury bonds in the eyes of investors.
“The increase in price is also favored by what professionals in this sector call “halving,” Fayyad believes, noting that “every four years, the number of bitcoins in circulation is halved to keep their creation under mechanical control, as they are rare and their value increases.” Therefore, it is very likely that the cryptocurrency will set new records during the future halving process that will take place next April.”
If gold prices witness a significant rise, it is expected that they will continue to rise. As for digital currencies, specifically “Bitcoin,” it is possible that they will witness record numbers next April.
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