Gold prices surged above $5,000 amid rising geopolitical tensions and global trade, while Bitcoin fell to $86,000 as the divergence between the two assets widened.
Gold rose to a record high of $5,080 on Monday, after rising 17% so far this year, According to to the price of gold, with traders eagerly reaching for the precious metal amid fears of a potential U.S. government shutdown and uncertainty about escalating tariff threats from the Trump administration.
“The likely government shutdown has only added fuel to the precious metals fire,” Kobeissi’s letter reads. he said on Monday.
Trade tensions also rose amid another round of tariff threats over the weekend, after U.S. President Donald Trump threatened Canada with 100% tariffs over a trade deal with China.
Gold Beats Ether (ETH) to $5,000 Milestone, Closing Out Polymarket Bet placed in early October, which ingredient will arrive first. ETH prices fell below $2,800 on Sunday and are now more than 40% below August’s all-time high of $4,946.
Silver also exceeded $107 per ounce for the first time in history and will escalate by 48% in 2026.
Bitcoin and gold correlation is falling apart
Bitcoin (BTC) lost 1.6% that day, erasing all the gains it had made so far this year, as it fell to a five-week low of just under $86,000 delayed Sunday on Coinbase. According to to TradingView.
Bitcoin is currently 30% below its October high of $126,000 as the divergence between the digital asset and gold continues to widen.
Related: Bitcoin sells off to weekly close as bulls face BTC price at $86,000. dollars
Investors more interested in gold than treasury bonds
Gold is rising and cryptocurrencies are falling due to the growing likelihood that the US government will face a shutdown at the end of the month, says Jeff Mei, chief operating officer of the BTSE exchange.
“Additionally, markets are pricing in the likelihood that the Fed will maintain current interest rate levels given that the economy is showing stronger growth and employment rates,” Mei told Cointelegraph.
“Typically in uncertain times, capital shifts towards safe assets such as US Treasuries and gold, but with a potential government shutdown and Trump’s recent tariff threats against Greenland, global investors are less inclined towards Treasuries and more towards gold,” he added.
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