Gold price breaks new high of 3790 USD "Taiwanese jewelry stores are crowded", The Federal Reserve (FED) lowers interest rates to heat up safe-haven demand, is the next round to exchange for Bitcoin?

Gold prices in USD hit a new high, and gold prices in Taiwan's jewelry stores surged to 14,110 TWD. Although this is not a historical high, a wave of selling gold has emerged, reflecting investors' alertness to high-end risks. Experts suggest to take a wait-and-see approach in the short term (Background: Argentina's inflation skyrocketed by 37% in a single month! US rescue efforts are ineffective, and the public is frantically buying Bitcoin and stablecoins for hedging). (Supplementary background: Gold breaks through 3600 USD to a new high, “Experts say it will rise further,” US unemployment rate collapses, and interest rate cuts favor Bitcoin?) Today (23rd), gold prices reached a new high of 3290 USD, while the price in Taiwan's jewelry stores jumped to 14,110 TWD per tael, just 70 TWD shy of the historical high set on April 22. Typically, high gold prices are accompanied by strong buying activity; however, on this day, jewelry stores saw customers queuing up with old gold jewelry for appraisal, waiting to sell, creating a striking contrast between the selling wave and the high price trend. As gold prices probe new heights, selling pressure is emerging at storefronts. According to Yahoo reports, data from the Taipei Jewelers Association shows that in just three trading days, local gold prices increased by 2.3%, marking a cumulative rise of 32.8% this year. Compared to the past, where high points were usually accompanied by increasing buying fervor, today's investors are adjusting in the opposite direction, revealing two messages: first, early investors are choosing to lock in profits; second, retail investors' psychological threshold towards high-end fluctuations is rapidly declining. Reflecting on the pullback after the peak in April, the trigger at that time was uncertainty in tariff policies, and this historical memory is influencing today's selling decisions. The Federal Reserve's easing stance is driving up hedging demand. The macro backdrop of this gold bull run remains the continuous interest rate cuts by the US Federal Reserve. The market generally expects two more cuts totaling 0.5 percentage points by the end of the year. The USD index has fallen to 90.3 this month, reflecting a diminishing advantage of USD interest rate differentials. A weaker dollar lowers the cost of gold purchases for non-USD investors and reduces the opportunity cost of holding non-yielding assets. Investment advisor Lee Yong-nian points out that every time the Federal Reserve cuts rates by 0.25 percentage points, international gold prices typically rise by 3% to 5%. With inflation still high and geopolitical noise persisting, gold and the dollar are forming a “teeter-totter” relationship, amplifying the hedging function. Another force comes from institutional positioning. The world's largest gold ETF, SPDR Gold Trust, has seen its open interest rise back above 1,000 tons, indicating a shift of funds from stocks and bonds to physical gold and ETFs. Additionally, with India's Diwali festival approaching, physical demand is heating up, pushing gold prices toward historical ceilings. If we convert to international prices, gold is currently nearing the 4,000 USD per ounce level, which is a significant technical resistance. Lee Yong-nian warns that chasing highs in the short term is likely to encounter profit-taking sell-offs. “Currently, gold prices have entered a technical pressure zone, nearing the 4,000 USD per ounce level, and the risk of chasing highs is high. I advise investors to wait and not rush into buying or selling,” he said. High prices also impact physical demand. Jewelry industry insiders reveal that the cost of gold jewelry is steadily rising, and consumers' acceptance of new jewelry has noticeably slowed, leading them to liquidate old jewelry or switch to smaller gold bars. Compared to the high volatility of gold, silver's average import price has only risen about 12% this year, indicating a lower speculative component. Short-term hedging demand: When will Bitcoin get its turn? The key factors influencing gold prices in the future remain the Federal Reserve's monetary policy, global inflation trends, and geopolitical risks. After the Federal Reserve cuts rates, the stock market and the crypto market did not experience the anticipated growth, but rather a technical pullback, making Wall Street realize the previously anticipated rate cuts were already priced in. The “selling gold wave” at Taiwanese jewelry stores also provides information that the high prices in the market prove the scarcity of hedging assets. Many wealthy individuals with substantial physical gold in Taiwan are liquidating to lock in profits, even more frantically than during the recent peak of gold prices in TWD, confirming that market hedging and uncertainty remain high. If gold stabilizes at historical highs for a few more weeks, some hedging holders may realize profits or even switch to Bitcoin. Therefore, Bitcoin is unlikely to profit from hedging in the short term, but if gold's hedging continues to ferment, there may still be opportunities to bring some hot money effects to Bitcoin. Investors are advised to continuously monitor trends related to hedging markets. Related Reports: Is the Japanese yen finally bottoming and set to rise? Wall Street hedge funds are “massively buying the dip in yen” betting on currency appreciation. US Vice President's speech at the Bitcoin conference: BTC is the best political hedging asset, with 50 million Americans holding it, supporting stablecoin legislation. Is gold still worth investing in? Is the most recognized hedging asset becoming outdated? (Gold prices broke a new high of 3790 USD; “Taiwanese jewelry stores are packed with people,” Federal Reserve rate cuts heat up hedging demand, next round to switch to Bitcoin?) This article was first published in BlockTempo, the most influential blockchain news media.