This is a few weeks for those who keep gold and bitcoin stock in their trading arsenal. Commodities have reached both record height as investors continue to continue them back.
Gold collapsed through a troy ounce obstruction this week – a troy ounces of weight for precious metals and equal to 31.1 grams for precious metals.
Meanwhile, on Sunday (October 5), the world’s oldest and most famous cryptocurrency, bitcoin hit a record, when the first time broke through $ 125,000 obstruction, before falling back.
This is a bumper 2025 for both items so far. Gold is at its biggest rally since the 1970s, with the price of more than 50% since January 1. There is some disturbed 2025 in bitcoin, but its value has increased around one third since the beginning of the year.
Why is this happening?
For a long time, it is seen as a so-called safe-disbursement asset what investors did during the period of uncertainty, gold has been upwards from the end of 2018, its value has increased by 300% since its value.
The unwanted current rally has been a factor, with US President Donald Trump mutually concerned with concerns over the global economy, the stability of the US government debt levels and the viability of the US dollar as the world’s reserve currency.
As a result of the war in Ukraine and in Gaza, there was geopolitical uncertainty.
Another recent factor has been a shutdown of the US government. Gold is widely as an alternative option of US dollar by investors, which has fallen rapidly in the price this year.
Hence gold has benefited in support of Japanese yen as a safe-heven property from a case. The Japanese shares increased on Monday, confirmed that Sai Takachi was elected as the leader of the ruling party LDP, making him the first woman Prime Minister of the country. However, Yen continued to fall back.
KCM Trade Chief Market Analyst Tim Waterr told the news agency’s Reuters, “Yen’s weakness behind the Japanese LDP elections has left investors with a low safe-heaven asset, and Abe was done to capitalize the gold.”
The situation in America that combines the attraction of gold. He said, “The closure of the US government means that a cloud of unwanted is still hanging on the American economy and the possible size of any GDP effect.”
However, experts say that the future of the American economy or in fact, is more for the current dedication of gold than doubts about the global economy. Several analysts say the demand for gold-supported exchange traded funds (ETFs) has increased, with more and more investors than the background limit seeking to invest more and more investors.
“The fact that the demand of ETF has re -introduced the view, so force means that there are two forms of ‘aggressive’ dialects to gold from central banks and ETF investors,” Dutash bank analyst wrote customers in a note.
Gold has long been purchased by central banks around the world, but the new ETF demand has fuel the current rally. Recent data of the US Commodity Futures Trading Commission (CFTC) suggests that hedge funds now have a record holding of gold worth $ 73 billion.
What about bitcoin?
Bitcoin’s record rally has been largely operated by Donald Trump’s reunion as US President, which helps his clear and frequent support for cryptocurrency to help in demand and trust in the region.
However, there is evidence that more institutional investors are falling into bitcoins similar to trend lakes with gold. Commodity is getting favored as an alternative to other prayers, discovering the US dollar. The expected interest rate cut so clearly attracts investors to take more risk on property.
Bitcoin, therefore appears to be a stranger on the back of uncertainty on the American economy, with the demand for the ongoing government clearing.
Jeffre Kandrick, head of Digital Assets Research at Standard Chartered Bank, wrote to investors in a note, “This time the shutdown matters this time.”
“This year, Bitcoin traded with government risks,” as shown by its relationship with the American Treasury Term Premium, “he said,” What is the demand of additional yield investors to keep long -term government bonds, reflecting the limits of their trust in long -term economic stability, referring to the metric. “
Another factor of the current strength of bitcoin may be related to its annual cycle. October has been historically one of its strongest months, the price of which falls only twice during the month of October since 2013.
Can the rally continue?
Many observers continue to increase the price of Lake Gold and Bitcoin, the successes of the new milestones are expected.
Jeffrey Kandrick predicted, “I suspect that bitcoin will grow in shutdown and will soon reach $ 135,000.” The fact is that the Trump administration is likely to continue favorable policies for cryptocurrency, combining a sense of optimism.
For sleeping, some people see it anytime losing value.
The HSBC on Friday told investors in a note, “Rallies can help from the purchase of the official sector in 2026; the institutional demand for gold as a diversion can remain strong.”
The London, the UK-based bank, said that the central banks would continue as a ongoing hedge against geopolitical risk to continue procurement of large quantities of gold.
What the World Gold Council said in its last quarter statement in late July, with the chimes with its annual Central Bank Survey, showed that “95% of the reserve managers believe that the Global Central Bank Gold Reserve will grow in the next 12 months.”
With the increasing demand from hedge funds and other institutional investors around ETFs, it suggests that the commodity prefers to dissolve a mark son of $ 4,000.
Edited by: Uwe Hessler