Gold reaches all-time high as bitcoin struggles for momentum amid market uncertainty

Gold reached a fresh all-time high of $2,902 per ounce as of Monday, marking a 17.5% increase since the start of the year.

Gold’s bullish trajectory has been fueled by ongoing central bank purchases, concerns over global trade policies, and investor demand for safe-haven assets, according to a report from the World Gold Council. Its data shows global gold reserves increased by 694 tons in the first ten months of 2024, continuing the record accumulation trend from previous years. The report said central banks are expected to remain net buyers of gold in 2025, citing de-dollarization efforts and geopolitical risks as key drivers.

Among the largest gold buyers in 2024 were Poland, India, Turkey and China, with net purchases of 89.5 tons, 72.6 tons, 74.8 tons, and 44.2 tons respectively. Western sanctions on Russia’s central bank reserves in 2022 have been cited as a turning point, reinforcing gold’s role as a geopolitical hedge.

The World Gold Council report found that 69% of central banks expect to continue accumulating gold, while 83% of those in industrialized nations cite it as a hedge against inflation and financial instability.

Central bank gold purchases in 2024. Image: World Gold Council.

Trump’s tariffs and market impact

Markets remain uncertain after President Donald Trump announced on Sunday a 25% tariff on all steel and aluminum imports, renewing fears of a global trade war. Steel and aluminum stocks surged in premarket trading in New York, with U.S. Steel and Nucor rising 8% and Cleveland-Cliffs gaining 9%. Alcoa also saw a 4% increase.

With Mexico and Canada among the top three U.S. suppliers, the tariffs cast doubt on last week’s temporary delay and could reignite trade tensions. Although stock futures showed optimism on Monday, QCP Capital sees a feedback loop emerging.

"President Trump, highly sensitive to market reactions, is facing a market increasingly calling his bluff. This could embolden him further, adding another layer of volatility," said QCP Capital.

Asset performance comparison over the past week. Image: Bitwise.

While bitcoin is often discussed as a hedge against monetary and geopolitical uncertainty, its correlation with risk assets has remained elevated, making it susceptible to shifts in market sentiment, according to a Bitwise report on Monday. In contrast, gold’s traditional role as a safe haven has strengthened its appeal amid growing concerns over inflation and trade disruptions.

Bitcoin, which began 2025 priced at around $93,000, is currently trading at $97,745, up approximately 5.1% year-to-date. As for the wider crypto market, the GMCI 30 — representing the top 30 cryptocurrencies by market cap — was up 0.59% over the past 24 hours, at around 168.82 at publication time.