Gold reaches new highs, BTC tests support levels, market may face chain reactions.
Gold has broken through historical highs, the European bond market is showing clear signs of pressure, and U.S. debt issuance is accelerating at a near-parabolic pace. BTC is currently fluctuating near a critical support level. If this level fails to hold, it may trigger a series of chain reactions in the market.
Central bank gold purchases and Fed rate cuts support gold prices, spot gold hits record highs this week
On September 2, gold prices broke through $3,500 per ounce, setting a new all-time high. Since the beginning of 2025, spot gold prices have risen by 33%, highlighting gold’s growing value as a safe-haven asset amid global macroeconomic uncertainty and increased market volatility. Central bank gold purchases and Fed rate cuts will continue to support gold prices, with Bank of America and Goldman Sachs bullish on gold reaching $4,000.
Against the backdrop of rising gold prices, traditional institutions are beginning to explore the feasibility of on-chain gold, making the gold token sector worth watching. According to the Financial Times, the World Gold Council is seeking to launch a digital form of gold, which could create a new way to trade, settle, and collateralize gold, potentially revolutionizing London’s $900 billion physical gold market.
World Gold Council CEO David Tait stated in an interview that this new form would enable "gold to be digitally transferred as collateral within the gold ecosystem for the first time." While many investors value gold precisely for its physical nature and lack of counterparty risk, viewing it as a safe-haven asset, Tait believes gold must digitize to expand its market reach.
BTC enters critical support zone, may consolidate within this range
BTC’s current critical support level is $106,000–$108,000, a range that holds significant technical and on-chain structural importance. This week, BTC touched this key level for the first time. Historical experience suggests that initial retests of such levels typically do not result in immediate breakdowns, and consolidation or pullbacks within this range are likely. Technically, BTC’s funding rates have cooled significantly recently, and implied volatility has dropped near historical lows. This comes as multiple major macroeconomic events are set to unfold this month, prompting traders to quietly adjust their positions.
Historical data shows that pullbacks of this magnitude often present opportunities for excess returns. However, in practice, trade structure and entry timing are equally critical, as misjudging market volatility is easy amid frequent macroeconomic developments. How can potential upside momentum in Q4 be captured while effectively hedging and managing downside risks? This question deserves market attention.
