Bitcoin News Today: Gold Overtakes Treasurys as Central Banks Rebalance Power

Spot gold prices reached a record high of $3,533 per troy ounce for immediate delivery and hit $3,600 for futures contracts as investor expectations for a Federal Reserve rate cut this month intensified. The surge was fueled by continued strong demand from foreign central banks, which have increased their gold holdings to the point where the precious metal has now surpassed U.S. Treasurys in value for the first time since 1996. Bloomberg data compiled by Crescat Capital macro strategist Tavi Costa indicated this shift, highlighting a broader trend of global rebalancing in reserve asset preferences [1]. The World Gold Council’s central bank survey further reinforced this trend, showing that the majority of surveyed institutions anticipate an increase in gold reserves over the next 12 months [1].

The price rally also reflects growing concerns about inflation and uncertainty surrounding U.S. monetary policy, particularly in the context of Donald Trump’s public criticism of the Federal Reserve and its chair, Jerome Powell. Analysts suggest that gold has emerged as a barometer for global unease, especially in relation to inflation, employment, and the perceived independence of central banks. The weakening U.S. dollar, exacerbated by political tensions and Trump’s economic policies, has further boosted gold’s appeal by making the metal more affordable for international buyers [2].

Investor sentiment is further supported by the Federal Reserve's anticipated easing cycle. Markets currently price in a 90% probability of a 25-basis-point rate cut by the end of September, according to the CME FedWatch tool. Lower interest rates typically enhance gold's attractiveness as it reduces the opportunity cost of holding non-yielding assets. Gold has surged 36% year-to-date, far outperforming both the S&P 500 and Bitcoin, which gained 8% and 19%, respectively, during the same period. Analysts attribute gold’s performance to its role as a traditional safe-haven asset amid macroeconomic volatility [1].

Central banks across Asia, the Middle East, and beyond have continued their multiyear gold-buying trend, with institutions such as the National Bank of Kazakhstan, the People’s Bank of China, and the Central Bank of Turkey making incremental purchases. According to the World Gold Council, 95% of central banks surveyed expect to increase gold holdings within the next 12 months, while nearly three-quarters anticipate reducing their dollar reserves. This shift underscores a broader de-dollarization trend and reflects growing skepticism toward the U.S. dollar's role as the global reserve currency [3].

Historically, gold's performance has often been followed by a stronger move in Bitcoin, particularly in the context of macroeconomic uncertainty and rate-cut expectations. Analysts have drawn comparisons between the two assets, noting that BTC has historically seen substantial gains in the months following gold's record highs. Given the current macroeconomic environment and the likelihood of Fed easing, projections suggest Bitcoin could see gains in the range of $135,000 to $145,000 by early December and possibly as high as $400,000 within a year [5]. However, these predictions remain speculative and hinge on how monetary policy and economic indicators evolve in the coming months.

Source: [1] Gold hits record as central bank holdings top US Treasurys for first time since 1996 (https://finance.yahoo.com/news/gold-hits-record-as-central-bank-holdings-top-us-treasurys-for-first-time-since-1996-202251724.html) [2] Gold price hits a new record high on a weaker dollar and... (https://www.cnn.com/2025/09/02/business/gold-price-record-dollar-interest-rates-intl) [3] Gold surges to record high as central banks turn from dollar to bullion (https://www.euronews.com/business/2025/09/02/gold-surges-to-record-high-as-central-banks-turn-from-dollar-to-bullion) [5] How High Can Bitcoin Price Go as Gold Hits $3.5K Record... (https://cointelegraph.com/news/how-high-can-bitcoin-price-go-gold-hits-3-5k-record-high)