Gold prices have spiked in recent weeks, hitting record five-week highs, near $3,420 per troy ounce. That said, the precious metal is currently vying with the $3,420 level. This recent spike can largely be attributed to a softening U.S. dollar and the shifting narrative surrounding future Federal Reserve interest rate hikes.
Gold prices have skyrocketed in recent months. This large jump can primarily be attributed to the Greenback’s recent notable weakness, thus rendering gold a more attractive alternative for investors seeking to insulate themselves against currency volatility. So when the dollar falls, commodities that are measured in dollars become less expensive for anyone who holds a different currency. This change radically increases demand for gold.
Furthermore, mixed U.S. Treasury yields have further strengthened gold’s attractiveness in the market. When financial markets are volatile, investors generally flee towards gold. The dog’s jittery present mixed sign y arcana from yields suggest a is too many sign that the macroeconomic fun maybe is about to accomplish turn. The chances for the Federal Reserve to make a rate cut in September are increasing. This sky-high expectation is driving gold’s bullish momentum. In general, lower interest rates increase the opportunity cost of holding non-yielding assets such as gold. This change makes gold a much more attractive investment.
Meanwhile, in Japan, inflationary pressures are still being felt, as Tokyo’s CPI is trending towards easing, but continues to be lofty. Headline Tokyo CPI soared by 2.6% YoY, as of August. At the same time, the core CPI, which excludes non-processed food and energy, rose only 2.5% y-o-y. Most importantly, the Tokyo CPI ex Fresh Food and Energy was up 3.0% YoY in August. While inflation continues to be a serious issue, these numbers illustrate a positive step toward moderation from earlier months. This leads to an even more difficult background for both formulating and advocating for positive economic policy.
At the same time, Ripple’s XRP continued to display bullish momentum within the digital currency market. As of Thursday, it is staying relatively flat right at that $3.00 threshold. This recovery comes in line with some promising on-chain metrics that are pointing towards a possible bullish breakout for XRP. Interest in the cryptocurrency has steadied over recent days, suggesting that investors may be regaining confidence in its future prospects.
XRP’s futures weighted funding rate has soared to a 100% premium. It shot up to 0.0090%, where it sits now, a hefty increase from just 0.0018% at the beginning of this week. This change reflects increasing activity and interest in XRP among traders, which could signal a shift towards more substantial investment in this digital asset.
In a broader context, investments in AI 2.0 technologies have ballooned past the hundreds of billions. Even with this massive financial commitment, monetization attempts are limited, putting into doubt the future profitability of these investments. Companies have a hard time taking these revolutionary technologies and developing them into viable revenue streams. This challenge is illustrated by the struggle to match investment levels with successful monetization.