Due to a new political crisis in France and mounting financial anxiety associated with the US government shutdown, the prices of gold and bitcoin reached all-time highs on Sunday and Monday. Stocks and bonds in the second-largest economy in Europe were rattled by the resignation of French Prime Minister Sébastien Lecornu on Monday, less than a month after he was appointed.
At the beginning of the week, gold prices were close to $4,000 an ounce, supported by anticipations of additional rate cuts by the US Federal Reserve. However, on Tuesday, at around 10:00 CEST, they fell to around $3,970.
Since the start of the year, when the price of the precious metal was $2,669, demand has been increasing gradually. In the meantime, Bitcoin, also known as “digital gold,” broke through the $125,000 mark on Sunday and reached a new high on Monday.
The US administration’s crypto-friendly policies and worries about dollar depreciation have contributed to the more than 30% spike in value of the largest cryptocurrency in the world this year. We (Coinhouse) are still convinced that we are nearing the end of a cycle and that caution is warranted,” stated Thibault Desachy, head of investing & wealth management at Coinhouse.
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