Gold Price Hits $3.5k, Bitcoin Breaks $110k as Fed Cut Hope Rise: What to Know?

Gold and Bitcoin are back in the spotlight as both assets are reaching new price milestones today. With the investors’ sentiments running hot on the ongoing macroeconomic events and the rising Fed rate cuts odds, these assets are quickly moving up. Here’s what’s reshaping the investors’ bullish sentiments and these assets’ uptrend.

Gold Price Crosses $3.5k Milestone, Bitcoin Recovers to $110k

The biggest asset and the shiny metal, Gold, has set a new milestone, with its spot price surging above $3.5k for the first time in history. This happened on early Tuesday trading hours, where it created the ATH of $3,508 before settling around $3,495.

Additionally, the U.S. gold futures also saw a sharp uptrend, hitting the $3,56.60 price per ounce.

Remarkably, this is a rise of over 100 times since 1971, the time when Richard Nixon ended the Bretton Woods system, which had the gold pegged at $35 per ounce.

With gold now at $3,500 per ounce, we are at a price that is 100x (in dollars) gold’s price of $35 per ounce when President Nixon fatefully closed “the gold window” in August 1971.

Is gold 100x better than it was in 1971?

Of course not.

Gold is the exact same, atomic number 79… pic.twitter.com/eAhnsZOfCU

— David Sommers (@dgsommersmkts) September 1, 2025

Other precious assets, including Silver and even the digital asset Bitcoin, are also riding the bull. Bitcoin price is up today, currently trading at $110.4k after a nearly 2.5% surge.

Interestingly, the token is recovering from August’s crypto market crash, where BTC price dropped to a month low of $108k. However, the trends are shifting ahead of the FOMC Meeting and other macroeconomic events.

Spot silver also gained a 1.6% price increase today, surging to its ATH since September 2011. It presently trades at $40.31 and is believed to be mirroring gold’s rally.

Fed Rate Cuts Hopes Fuel Gold, Bitcoin, and Silver’s Price Rally

With the FOMC meeting approaching, dated Sept. 16–17, investors are eyeing the Fed’s potential decision for a 25 basis-point cut. CME FedWatch tool data shows an 89.8% chance of the rate cut, whereas Polymarket and other tools show 90% or higher probabilities.

This optimism is fueling the Gold price rally today, bringing along Bitcoin and other assets. Notably, Jerome Powell’s Jackson Hole speech highly influenced the investors’ optimism, as it signaled openness to easing rates.

As a result, the retail traders are highly bullish on the Fed’s decisions. Besides, Gold has already gained 30% this year due to rising geopolitical uncertainty and central bank buying.

🔥Gold and Silver prices are SKYROCKETING:

Gold and Silver prices are up 31% and 38%, year-to-date.

Gold is having its best year since 1979.

Silver is trading above $41 FOR THE FIRST TIME IN 14 YEARS.

Both have beaten the S&P 500 by more than 3 TIMES. pic.twitter.com/hSBboVqLBI

— Global Markets Investor (@GlobalMktObserv) September 1, 2025

Additional factors like Trump’s trade war, where the U.S. appeals court called most tariffs illegal, declining dollar support, and others are pushing investors to these assets.

Overall, the Gold’s price rally to $3.5k and Bitcoin’s to $110k is fueled by the investors’ expectation from the Fed, political uncertainties, weaker dollar, and more.

Pooja Khardia

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.

Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.

Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.

When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.