As global tensions rise and trade concerns escalate, both gold and Bitcoin have gained traction as safe-haven assets, with investors turning to these alternatives while awaiting the Federal Reserve’s next move.
Spot gold increased by 0.7% on Tuesday, reaching $3,357 per ounce, driven by heightened demand for safety in uncertain times. US gold futures saw a larger gain of 1.3%, supported by renewed interest from Chinese investors. Additionally, central banks have continued to shift away from the US dollar, further boosting gold’s appeal.
Meanwhile, Bitcoin traded near its February highs, hovering around $97,500. The cryptocurrency remains sensitive to market sentiment, with hopes that dovish signals from the Fed could propel Bitcoin toward its previous peak near $100,000.
Investors are focused on the Federal Reserve’s upcoming policy decision, with expectations that interest rates will remain steady between 4.25% and 4.50%. However, the market is closely monitoring signs that persistent inflation combined with slowing consumer demand could delay the potential rate cuts that had been anticipated later this year.
Geopolitical tensions have added to the market unease. A Houthi missile strike near Tel Aviv, followed by Israeli retaliatory strikes in Yemen, has heightened concerns. At the same time, President Trump’s new tariff proposals have further rattled trade relations. Despite these uncertainties, Bitcoin has remained resilient, bolstered by demand from exchange-traded funds (ETFs) and speculation around future rate cuts.
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