Gold prices are approaching historic highs, driven by escalating geopolitical tensions in the Middle East and persistent inflation concerns, while Bitcoin continues to exhibit characteristics aligned with risk assets rather than safe havens, according to market analysts.
Gold has surged to $3,450 per ounce, nearing its all-time peak. This rally is attributed primarily to investors seeking refuge amid heightened instability and ongoing worries about rising prices.
In contrast, Bitcoin, despite posting a 13% gain year-to-date, remains below its peak value reached in May. Its price movements show a stronger correlation with equities and other risk-sensitive assets than with traditional safe havens like gold.
Analysts highlight a clear divergence in asset performance. Oil and gold have moved inversely to equities and Bitcoin during the recent period of geopolitical uncertainty.
The perception of Bitcoin as ‘digital gold’ appears to be weakening, as it has failed to replicate gold’s significant rally during periods of market stress and heightened risk aversion.
Market participants are now closely anticipating the upcoming Federal Reserve policy meeting. The central bank’s decisions on interest rates and its outlook are expected to significantly influence the trajectory of both gold and Bitcoin prices.