Gold Surpasses $3000 an ounce as Bitcoin (BTC) Struggles

The recent market turmoil might have given gold the bragging rights of being the "store of value" while "digital gold" struggles

Gold futures for April delivery on the Commodity Exchange, a division of the New York Mercantile Exchange, soared to a record high of over $3,000 an ounce on Monday. The precious metal is consolidating just below the $3,000 handle, trading at around $2,996.88 an ounce, up 15% year-to-date. In contrast, bitcoin is down 12% this year and is hovering around the $80,000 mark.

This divergence highlights gold’s role as the ultimate safe-haven asset in the current economic environment.

As reported by Eric Balchunas, a senior Bloomberg ETF analyst, U.S. spot bitcoin ETFs have seen inflows for only three days since mid-February. This has reduced total net inflows from approximately $40 billion to around $35 billion.

The S&P 500 has entered correction territory, falling over 10% and struggling to rise above its 200-day moving average. This downturn can be attributed to several factors, including the threat of further tariffs from former President Trump and the stalled ceasefire negotiations between President Putin and Ukraine, which are increasing global uncertainty.

Head of Research at Bitwise in Europe Andre Dragosch attributes gold’s record highs and the U.S. equity sell-off to rising short- and medium-term inflation expectations, combined with decreasing consumer confidence.

“The recent rally in gold to new all-time highs is likely being driven by both increasing inflation expectations and a broader flight to safety,” Dragosch explains. “In fact, both short- and medium-term inflation expectations in the University of Michigan consumer survey have risen to multi-decade highs. U.S. consumers are becoming increasingly concerned about inflation, which is being fueled by the Trump administration’s new tariff policies.”

He further adds, “Meanwhile, U.S. equities have been selling off due to the mounting economic uncertainty brought on by these trade policies and the increasing recession risks amid a slowdown in the labor market. Both of these factors have significantly impacted and buoyed the price of gold.”

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