Gold has continued its strong upward trend, reaching a record $4,739 per ounce in futures trading as investors seek safety during market uncertainty. Bitcoin, often regarded as a digital safe haven, has meanwhile slipped to $90,929, reflecting broader market volatility.
In brief
- •Gold continued its strong upward trend, reaching a record of $4,739 per ounce as investors sought safety amid market uncertainty.
- •Geopolitical developments, including U.S. tariff announcements, intensified fears of a wider trade conflict and rattled global markets.
- •Bitcoin slipped to around $90K, reflecting heightened volatility and a cautious investor mood.
Gold and Silver Soar While Bitcoin Faces Volatility
The surge in gold is part of a broader rally in precious metals. Over the past 12 months, gold has risen by more than 81%, marking one of its strongest annual performances in history. Silver has followed a similar path, demonstrating its appeal as a hedge against volatility. According to insights from the Kobeissi Letter, silver recently hit $94.68 per ounce and has achieved five record highs already in 2026.
The sustained momentum in gold and silver highlights their role as established safe-haven assets during periods of economic uncertainty. While these metals continue to draw significant investment, cryptocurrencies are experiencing increased volatility.
Geopolitical Tensions Impact Markets
The recent weakness in Bitcoin aligns with renewed geopolitical concerns following U.S. President Donald Trump’s announcement of a 10% tariff on all goods sent to the United States from eight European countries, including Germany, France, and the United Kingdom, set to take effect from February 1. Trump indicated these tariffs could rise to 25% by June if negotiations fail, linked to his pursuit of what he described as the “complete and total purchase of Greenland.”
Trump’s announcement immediately reignited fears of a wider trade confrontation, prompting European leaders to hold emergency meetings and take actions that intensified market tensions.
This tension is being felt across global markets, including stock indices, bond yields, and investor sentiment worldwide.
- •U.S. stock futures reflected immediate market concern, with Dow Jones futures pointing to a 378-point drop at the opening, S&P 500 futures down 0.9%, and Nasdaq 100 futures falling around 1.1%, suggesting a soft start to trading.
- •In Japan, bond markets reacted sharply as the 40-year government bond yield climbed more than 5 basis points to 4%, marking its highest level since the bond’s introduction.
- •Shorter-term Japanese bonds faced even steeper declines, with the 10-year yield rising over 6 basis points to 2.3%, reaching levels not seen since 1999.
- •The 20-year government bond yield jumped roughly 9 basis points to 3.35%, highlighting growing investor caution and the broader impact of global uncertainty on fixed-income markets.
Crypto Slumps as Gold May Boost Bitcoin
The geopolitical and financial developments affected the broader cryptocurrency market beyond Bitcoin. Ethereum fell more than 3% within 24 hours, while XRP and Solana dropped over 2% in the same period, reflecting a wider sell-off as investors sought safety amid uncertainty.
Meanwhile, Bitcoin investor and commentator Lark Davis highlighted that gold’s momentum could influence capital flows back into digital assets. He observed that gold’s approach toward $5,000, a key level indicated by the 4.618 Fibonacci extension, may prompt a rotation of investment from precious metals into Bitcoin if the metal continues to accelerate.