Gold Price Hits New Record at $4,035 Per Ounce – Is Bitcoin’s Next All-Time High Around the Corner?

Core Insights - Gold prices surged to an all-time high of $4,035 per ounce as investors sought safe-haven assets amid political and economic instability in the United States [1][7] - The rally represents gold's strongest performance since the 1970s, with a 30% increase since April, driven by factors such as Trump's tariffs, a weakening dollar, and record inflows into gold-backed ETFs [2][7] Market Dynamics - The ongoing US government shutdown has contributed to increased demand for gold, as investors typically turn to safe-haven assets during periods of uncertainty [3][4] - Inflows into gold-backed ETFs reached a record $64 billion in 2025, indicating strong investor interest [3] Demand Trends - Precious metals dealers report a significant rise in demand from private clients, with some firms seeing their customer base double over the past year [4] - Analysts suggest that while gold prices may eventually decline, the current economic environment supports an upward trend for at least the next five years [4] Interest Rate Impact - Historically, higher interest rates make non-yielding assets like gold less attractive, as seen in 2022 when gold prices fell from $2,000 to $1,600 due to aggressive Fed rate hikes [5] - Current market sentiment anticipates potential rate cuts, which could enhance gold's appeal [5][7] Competitive Landscape - Bitcoin has also experienced significant gains, surpassing $125,000, and is drawing parallels to gold as a safe-haven asset [6] - Analysts project that Bitcoin could reach $165,000 by year-end if the current momentum continues, indicating a competitive environment for safe-haven investments [6]