Bitcoin remains subdued as gold races to new record above $5,400 following Jerome Powell remarks

Core Viewpoint - The gold market has entered a significant bullish phase, with prices surging 6% to over $5,400 per ounce, marking a notable performance compared to other assets like silver and platinum [1]. Group 1: Gold Market Performance - Gold's market capitalization is estimated to be around $40 trillion, making it a standout asset in the current market environment [1]. - A substantial portion of gold's price increase followed comments from Federal Reserve Chairman Jerome Powell, who indicated that the fed funds rate would remain steady at 3.50%-3.75% [2]. - Powell cautioned against interpreting the rise in gold and silver prices as a macroeconomic signal, asserting that the Federal Reserve's credibility remains intact despite some market perceptions [3]. Group 2: Comparison with Bitcoin - Bitcoin (BTC) has been underperforming compared to gold, trading at $89,000 and showing little movement following the Fed's decision [4]. - Over the past 12 months, gold has increased by more than 90%, contrasting sharply with Bitcoin's struggles, which raises questions about its effectiveness as a macro hedge [6]. - The current market dynamics suggest that Bitcoin is losing its position as "digital gold," as gold is reclaiming market share from Bitcoin amid rising geopolitical and fiscal risks [7].