Gold and Bitcoin Fall in the US Amid Stronger Dollar — The National

In the US, gold and Bitcoin declined amid a strengthening dollar after rising simultaneously in August. According to The National, gold had previously exceeded $4,600, while Bitcoin rose above $80,000 for the first time since May. Investors directed funds into both assets over concerns about inflation, US government debt and the long-term value of traditional currencies.

The dollar later strengthened, with gold falling to about $4,300 and Bitcoin dropping below $77,000. The publication notes that the prolonged conflict in the Middle East and rising oil prices could increase inflationary pressure. In such a scenario, the US Federal Reserve may keep interest rates high for longer or raise them, making dollar-denominated assets more attractive.

Impact of rates on markets

Forex.com analyst Fawad Razaqzada linked the decline in global stocks, gold and Bitcoin to concerns over a more restrictive Federal Reserve policy, which are weakening investors’ appetite for risk. At the same time, gold and Bitcoin should not be equated, according to Tony Holshead, chief executive of Dubai-based STP Partners. He said gold has a centuries-long history of preserving value and substantial demand from central banks, whereas Bitcoin is far more volatile and behaves as a risk asset during market stress.