Gold breaks $5,000 while Bitcoin loses momentum
Gold prices surged past the $5,000 per ounce level for the first time on Monday, marking a historic milestone for the precious metal. At the same time, Bitcoin remained stuck near $87,000, underscoring a growing divergence between traditional safe-haven assets and cryptocurrencies. The contrasting moves highlight how investors are positioning amid heightened macroeconomic and political uncertainty.Drivers behind the gold rally
Gold’s move above $5,000 per ounce capped its strongest annual performance since 1979. Over the past year, the metal has gained approximately 72%, supported by sustained demand from central banks, geopolitical instability, and a broad shift away from the US dollar. Investors have increasingly treated gold as a hedge against fiscal and monetary uncertainty.China has played a visible role in this trend. The country has reduced its holdings of US Treasury securities to the lowest level in 17 years while simultaneously increasing its gold reserves for a thirteenth consecutive month. Market participants view this as part of a broader diversification strategy by major reserve holders seeking to reduce exposure to dollar-denominated assets.
Confidence in the dollar was further shaken by political developments in the United States. The Department of Justice initiated a criminal investigation involving Federal Reserve Chair Jerome Powell, reportedly linked to testimony concerning renovation costs at the Federal Reserve’s headquarters. Powell responded with a video statement, arguing that the move reflected political pressure related to his refusal to cut interest rates rather than a substantive legal issue.
Markets interpreted the episode as a challenge to central bank independence, reinforcing demand for gold. Investors broadly see threats to monetary autonomy as a long-term risk factor for fiat currencies, adding momentum to the precious metals rally.
Silver joins the surge
Silver prices also posted historic gains, breaking above $100 per ounce for the first time and reaching a record high of $103.45. The metal has risen more than 200% over the past year, significantly outperforming most major asset classes. Analysts cite structural supply deficits and rising industrial demand as key factors behind the move.Bank of America analysts have projected that silver could trade between $135 and $309 per ounce in 2026 under scenarios of continued supply constraints. While such forecasts remain speculative, they reflect growing bullish sentiment across the broader precious metals complex.
Bitcoin struggles near resistance
In contrast to metals, Bitcoin has been unable to break decisively above the $100,000 level and continues to trade around $87,000. On-chain data from Glassnode shows a heavy concentration of supply above $100,000, where many investors who bought near the 2025 highs are positioned to sell at breakeven or with minimal losses.CryptoQuant data indicates that, for the first time since October 2023, a portion of Bitcoin holders has begun selling at a loss. This pattern is typically associated with consolidation phases rather than the early stages of a new rally. Over the past week, while gold gained 8.6%, Bitcoin fell by 6.6%, behavior more characteristic of a risk asset than a defensive store of value.
The divergence suggests that, at least in the current macro environment, investors are prioritizing traditional hedges such as gold and silver over cryptocurrencies. Whether Bitcoin can reclaim its narrative as a macro hedge may depend on renewed inflows and a clear break above key resistance levels.
Editorial Team - CoinBotLab
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