Gold prices broke another record on Wednesday, hitting $3,317.90 before pulling back slightly to $3,299.85 by 11:07 GMT as Americans continue to move further into it as a safe haven to current global uncertainties.
The rally followed President Donald Trump’s Tuesday decision to launch an investigation into new tariffs on critical mineral imports, triggering a massive rush toward the metal. U.S. gold futures jumped 2.3% to $3,315.80, locking in the most aggressive spike of 2025 so far.
The announcement came as Trump pushed to weaken China’s grip on essential supply chains tied to national security.
The same day, the U.S. Commerce Department rolled out new export licensing rules for Nvidia’s H20 and AMD’s MI308 AI chips to China. That hit markets hard. Equities in Asia and Europe dipped fast. U.S. stock futures slipped too.
Gold? It went in the opposite direction. Investors dumped risk. They wanted something solid. They wanted gold.
Americans leave tech and Bitcoin for gold as faith in markets drops
A fresh Bank of America survey showed that 73% of investors now believe the U.S. economy’s exceptional status has peaked. At the same time, 49% say “long gold” is now the most crowded trade on the street, replacing American tech plays for the first time in two years.
The price of the precious metal has already jumped almost 26% this year. Central bank buying has gone through the roof. Retail investors and institutions are pushing into bullion-backed ETFs. And the real cherry on top? Markets expect the Federal Reserve to cut rates—maybe as soon as June. That combo of demand, politics, and central bank policy is setting up 2025 to be gold’s strongest year in over a decade.
On Wednesday, ANZ raised its six-month forecast to $3,500 per ounce. Its year-end prediction is now $3,600. Traders are acting like it’s already there.
But some are warning this rocket could overheat. Ole Hansen, from Saxo Bank, said, “The rally has become a bit unhinged, leaving it at risk of corrections. However we have for more than a year now seen corrections to be shallow, with underlying bids waiting on any setbacks.”
Right now, gold’s RSI is over 70, which is a red flag that the metal is technically overbought. Still, no one seems scared.
Bitcoin steps off the fast track
While the precious metal has stayed hot, Bitcoin has been sliding all over the place. On Tuesday, Bitcoin was priced at $85,123, but by Wednesday it dropped to $84,165, per data from CoinGecko. After smashing through $100,000 in December 2024, Bitcoin stumbled into 2025 with a rough 10.2% YTD drop. It dropped to $81,300 earlier this April and fell again to $82,362.27 in March after taking a 6.37% hit in a single day.
Still, over five years, Bitcoin has delivered over 1,092.9% in gains. But for 2025? The real winner is gold, sitting at a more stable 91.1% increase over the same five-year stretch, but crushing the short-term charts with a 20–23% YTD rise. That rise started early in the year when it cracked $3,000, and it hasn’t looked back.
Gold’s market cap is $21 trillion foundation, while Bitcoin’s is just $1.6 trillion. That gap makes the precious metal far less reactive to sudden shocks, and investors are choosing safety right now.
The Bitcoin-to-gold ratio paints the same picture. On December 16, one Bitcoin could get you 40 ounces of gold, with Bitcoin at $106,000 and gold at $2,650, but that ratio has now crashed to about 25.9 ounces.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 