Bitcoin plunges, gold soars : lessons for investors ?
This divergence is mainly explained by the role of gold’s safe-haven status, especially in a context of economic and geopolitical uncertainty. With the upcoming “Liberation Tariffs” announced by Donald Trump, investors are turning heavily towards gold to hedge against risks.
Trump has recently announced substantial new tariffs, especially on imported automobiles (+25%) and steel/aluminum (+25%). These protectionist measures raise concerns about a deterioration in trade relations between the US and its major partners. In this tense climate, gold appears as a preferred safe-haven asset. It is experiencing increased demand from investors looking to secure their assets.
Moreover, countries like Russia, Turkey, and China continue to increase their gold reserves, further bolstering upward pressure on prices. Geopolitical tensions, including the tough negotiations between the US and Russia on the ceasefire in Ukraine, also fuel this appetite for gold, seen as a safe asset.
Technical analysis : XAU/USD heading towards $3,500 ?
From a technical perspective, gold shows a solid bullish momentum. The price successfully broke the key resistance at $2,787, the top of the ascending triangle formation. It is now trading above the 50-week exponential moving average, a signal of a positive trend. The Relative Strength Index (RSI) has also climbed to 47, indicating a strengthening momentum.
Gold Price Chart. Source: TradingView
These technical elements suggest a continued rise in gold prices, with the next target to watch around $3,500. Only a return below the support at $2,787 would challenge this bullish outlook.
Gold or crypto : where to invest in uncertain times ?
While cryptocurrencies are plummeting, gold shines brightly, fully benefiting from its safe-haven status in an uncertain economic and geopolitical context. This performance divergence shows that Bitcoin and other cryptos are not yet perceived as secure assets, unlike gold.
Declining Crypto Market. Source: CoinGape
However, crypto investors remain hopeful for a rebound once the dust settles. Risk assets have often performed well during recessions, thanks to interventions by the Federal Reserve to boost the economy. Cryptocurrencies might regain strength once the situation calms down. If you believe it’s the right time to invest in cryptos, you can do so on the Weex platform. Currently, you can benefit from an attractive welcome offer!
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