Gold Hits Record $3,900 As U.S. Shutdown Begins; What It Means for Bitcoin

Gold surged to a record high of $3,891.7 per ounce on Tuesday. It marked the first time in history that the price approached the $3,900 level. According to market data, the gold price increased by 0.48% in one session, equivalent to $ 18.50.

The rally marks a larger uptrend that has been developing over the past two months. Gold prices climbed rapidly by more than 20% in a short span. The rally began in late August with an average price near $3,200. By October, gold averaged over $3,880, marking a sharp surge.

Gold Displays Massive Breakout Pattern

The charts also show a steady upward movement characterized by consolidation with sharp breakouts. The most recent surge above $3,900 indicates the end of a consolidation phase between $3,600 and $3,800.

Market analysts describe the current gold price movement as a typical shakeout phase. It’s seen as part of its cycle toward reaching a new all-time high. The chart evidences previous consolidation blockages in 2023 to mid-2024.

It is then followed by corrections, which erased weak positions before the latest rally started. The breakout has already entered a price discovery mode where resistance is limited and the upward movement can be accelerated.

Bitcoin Could Mirror Gold’s Performance

Similar to the behavior of gold, the Bitcoin price is depicting almost identical chart patterns. According to market analysts, the current trend of Bitcoin has been compared to the pattern of gold. This indicates that both exhibit periods of consolidation, shakeouts, and subsequent surges.

In the recent move, Gold had a consolidation box (marked between 2,900 and 3,200), followed by a shakeout. During this time, it was prepared to break out to an all-time high.

Analysts believe that Bitcoin is currently at a similar stage. It is holding between $90,000 and $115,000 following its own shakeout.

If the pattern continues, Bitcoin may follow a similar breakout trajectory. This could unfold over the next year as market conditions align. By 2026, Bitcoin might reach new all-time highs.

Investor Sentiment and Kiyosaki’s Silver Prediction

With gold and Bitcoin taking center stage, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has turned to silver. Kiyosaki recently shared his preference for silver over other assets.

He said that with $100 to invest, he’d choose silver coins instead of gold or Bitcoin. He estimated that silver would become more than $500 a year, and described this as the next big investing trend.

This marks not the first occasion that Kiyosaki relied heavily on silver. He has referred to silver and gold as the money of God in past predictions. Bitcoin, on the other hand, was described as the people’s money.

He forecasted gold to reach $5,000 and silver to hit $500 in 2023. For Bitcoin, he predicted a surge to $500,000. His outlook was based on the belief that the U.S. dollar was structurally weak.

But Kiyosaki has a mixed record. He accurately predicted the 2008 financial crisis in his 2002 book, Rich Dad’s Prophecy. However, several of his later forecasts did not come true. Notably, his predictions about stock and real estate crashes in 2016 and 2017 proved incorrect.

He has made many predictions about silver over the years. These forecasts have drawn both support and skepticism. Critics note that he’s consistently promoted silver for the past two decades. Yet, it has not grown explosively as he frequently predicts.