Expectations on Fed Rate Cuts and Gold’s Ascent
With liquidity concerns rising, corporate demand for gold is increasing. Central banks added over 800 tons of gold to reserves in the first half of 2025. Among the prominent buyers are China, Turkey, and India. Declining real returns and diversifying reserves hint at a broader portfolio insurance role, surpassing the traditional inflation hedge narrative.
Projections by major institutions further solidify this trend. Both Bank of America and J.P. Morgan believe the gold price could reach the $4,500–5,000 per ounce range by 2026. The market narrative is shifting from interest sensitivity to a liquidity‑centered regime. Central bank purchases, dedollarization trends, and corporate hedge strategies support the upward move of the precious metal.
Bitcoin’s “Digital Gold” Challenge
According to QCP analysts, despite the weekend tremor, the correlation between Bitcoin and gold has surpassed 0.85. The synchronized inflow and outflow suggest shared flows between traditional and digital value stores. Bitcoin’s approach to a new maximum just before the weekend underscores increasing corporate balance sheet positioning.
ETF activities are keeping the flow outlook vibrant. The last trading day witnessed net inflows of $102.7 million into spot Bitcoin ETFs and $236.2 million into spot Ethereum ETFs. Risks associated with tariffs reappearing on the agenda and shifts in liquidity dynamics will test the sustainability of the “digital gold” narrative in the next macro phase.