Up and away: Bitcoin breaks the $40k barrier and gold reaches a fresh high of $2,100.

spot pricing for gold surpassed the previous record high on Fed Chair Jerome Powell's dovish comments that the monetary policy is "well into restrictive territory" before mostly paring the gains.

The price of bitcoin has surged to a high of $40,210 due to growing hopes that the US Federal Reserve may implement rate cuts in early 2024 and the impending approval of bitcoin funds traded on the US stock market.

Early on December 4, gold reached an all-time high of $2,100 before giving up most of its gains.

Since early October, the yellow metal has been rising, and on December 1, it reached its peak due to dovish remarks made by the US Federal Reserve.

Despite efforts to calm the excitement, Federal Reserve chairman Jerome Powell's statement that the monetary policy was "well into restrictive territory"

caused the dollar and Treasury yields to plummet and sent gold to an all-time high due to increased anticipation of rate reduction by the US central bank in early 2024.

Gold is benefiting from the decline in the dollar and Treasury yield, which is a non-interesting bearing.

Growing hopes for US rate cuts in the coming weeks have also contributed to the rise. 

This was supported by a 60 basis point reduction in the US 10-year Treasury yield as well as an almost 3 percent decline in a currency index during November.

ETF holdings have experienced a significant decline since the end of May, but since mid-October, they have begun to stabilize. After five weeks of weekly rises, they dropped last week.

10 Delicious Ways to Cook with Apple Cider

ALSO WATCH