Inflation-Adjusted Gold Price Hits Record High Above $3,635; Is Bitcoin Next?

Group 1: Gold Market Insights - The inflation-adjusted price of gold has reached a record high, trading above $3,610 per ounce, marking the first such occurrence since the 1980s [1] - Rising inflation and anticipated interest rate cuts create a favorable environment for gold, which is also historically correlated with Bitcoin [1][7] - The latest US CPI data for August shows annual inflation at 2.9%, up from 2.7% in July, indicating persistent price pressures [3] Group 2: Economic Indicators - The US Producer Price Index (PPI) for August was reported at 2.9%, lower than the expected 3.3%, suggesting potential declining inflation [4] - The PPI is viewed as a leading indicator for the CPI, which may influence the Federal Reserve's decision on interest rates [4] Group 3: Demand Factors for Gold - Increased demand for gold in 2025 is driven by global tensions, including trade disputes and political instability, enhancing its status as a safe-haven asset [5] - Central banks in emerging markets are increasing gold reserves to diversify from the US dollar, reflecting concerns over its stability [6] Group 4: Interest Rates and Investment Behavior - Expectations of lower interest rates reduce the opportunity cost of holding gold, contributing to its price increase [7] - Bitcoin is often referred to as "digital gold," sharing similar investment dynamics in the context of inflation [7]