Gold, often considered an analogue for sound money, rose 1% on Monday, raising another record, bringing its 2025 gain to 43%.
The metal, currently trading at $3,721, has moved about an hour after Bitcoin. BTC$112,628.42Viewed by some supporters as digital form of sound money, it recorded a 3% 24-hour drop, lowering the price to $112,000 and lowering its year-over-year to 17%. The timing suggests that profits from Bitcoin liquidation may have been turned into gold.
Two assets rarely move in tandem, but they can rise or fall at the same time, and often have short delays. This time, the divergence will be stronger.
Gold is not the only way to attract metals. Silver scored 1.5% on Monday, approaching $44 at its third highest level since 1975, and now has an increase of over 50%.
In particular, the Federal Reserve reduced interest rates by 25 bps on September 17, making both gold and the S&P 500 an increase of about 1%. At the same time, the US Treasury yields rose, with the US increasing by 4.125% (2.5% increase) for 10 years and the US increasing by 4.7% (2% increase) over 30 years.
The dollar has been strengthened with the DXY index adding 1% to 97.5. The stronger dollars typically put pressure on risky assets, with Bitcoin down more than 3.5% since the Fed's move.
The Federal Reserve's Assets Since Interest Rate Cuts (TradingView)
