Gold price has exceeded $3,300 per ounce, marking an all-time high amid high volatility in the global market.
This surge reflects investors' anxiety about economic uncertainty and highlights the significant impact of Trump's controversial tariff policies. Experts have made conflicting predictions about its potential impact on Bitcoin.
Why Does Gold Continue to Break Records?
At the time of writing, gold reached $3,317, representing a 25% increase since the beginning of the year.
According to a New York Times report, the global trade war is the primary reason for gold's continued rise. Retaliatory tariffs between major economic powers are clouding the global economic outlook.
The United States imposed new tariffs, with China, the European Union, and Canada taking immediate countermeasures. The White House further exacerbated the situation.
"General uncertainty and the deteriorating economic atmosphere are increasing interest in gold, but most of the gold price is focused on tariff-related uncertainty." – Helima Croft, Global Commodity Strategy Head at RBC Capital Markets, stated.
Additionally, concerns are growing that tariffs could directly target gold imports. These fears have led to gold hoarding in the United States.
Business Standard reported that major banks like JP Morgan Chase and HSBC are moving large amounts of gold from London to New York. JP Morgan plans to transport gold worth $4 billion this month alone.
Beyond the trade war, macro analyst Zero Hedge pointed to another factor: the FY2025 Senate Budget Resolution. This resolution allows the US to increase budget deficits by up to $5.8 trillion over the next decade. Zero Hedge suggested that gold is responding to this news.
The price surge reflects fears of currency devaluation due to increasing deficits.
Goldman Sachs also raised its year-end gold price forecast to $3,700. The bank cited stronger-than-expected central bank demand and increasing recession risks.
Gold Hits New High… What Do Analysts Say About Bitcoin?
While gold shines, Bitcoin, often called the "digital gold," receives mixed opinions.
Anthony Pompliano, CEO of Professional Capital Management, said on CNBC on April 15th. Bitcoin has dropped about 10% since the beginning of the year, while gold has risen 20%. However, both assets have risen about 35% over the past year.
He also explained reasons why Bitcoin could soon rise like gold. These include the US government's strategic Bitcoin reserve plans and increased perception among younger generations as a long-term investment strategy.
"History says Bitcoin's returns will exceed gold in the next few months." – Pompliano predicted.
Supporting this view, several analysts mentioned that Bitcoin often follows gold's upward momentum after about 100 days, especially when global liquidity increases. Companies purchased over 95,400 BTC in the first quarter of 2025, showing strong institutional demand.
However, not everyone agrees. Long-time Bitcoin critic economist Peter Schiff presented a contrary view. He argued that the best trade right now is to sell all Bitcoin and other cryptocurrencies and invest entirely in gold and silver mining stocks.
