Gold won a new high on Tuesday Bitcoin has crossed the $90,000 threshold Anxious about the strength of the US dollar sent investors looking for other safe shelters.
Traditional and emerging alternatives, particularly gold and Bitcoin, are rapidly gaining favor as President Donald Trump’s tariff policies are throwing markets into chaos.
In a commercial exchange in New York, gold Over $3,500 per troy ounce, Wall Street rebounded from Monday’s sale, reaching new records before retreating to around $3,426 just before noon.
Precious metals have skyrocketed nearly 30% since Trump returned to the White House.
“Orders from central banks and retail investors are driving a historic surge in gold,” a JPMorgan analyst noted, adding that gold averaged $3,675 per ounce by the fourth quarter, potentially reaching $4,000 by mid-2026.
Bitcoin also gained a boost, rising to nearly $91,000, the highest level since early March. The Spot Bitcoin ETF has also recovered, with the iShares Bitcoin Trust (IBIT) and others earning 2.4% after making a 3% jump on Monday.
The ETF recovered above the 50-day moving average, with a total inflow rising $381.3 million on Monday.
The Ark 21Shares ETF (ARKB) led at $116.1 million, followed by Bitwise (BITB) at $87.6 million and iShares at $41.6 million.
The sharp rise in gold and Bitcoin was sparked by investors’ concerns about both geopolitics and domestic monetary policy.
President Trump posted a social media message on Monday, suggesting that the Federal Reserve will soon cut interest rates despite recent inflation signs.
Many interpreted this message as a lesser threat to Federal Reserve Chairman Jerome Powell.
Rania Gule of Xs.com pointed to growing global skepticism about the dollar.
The ICE US Dollar Index, which tracks dollars against a large basket of currencies, fell by more than 1% on Monday, making religious assets more attractive to international buyers. Greenbacks rose 0.45% as of noon Tuesday.
“The decline in faith in the dollar is one of the key factors that push gold up,” Gale said.
Pepperstone market strategist Michael Brown reflected his emotions.
“Investors are reducing their exposure to US assets amid policy instability. Gold is one of the few ways Trump is protected from the volatility that he can implement in a single post.”
That instability sparked interest not only in gold but also in Bitcoin as investors diversified away from the dollar.
Digital currencies are rising sharply in tandem with gold, reflecting broader changes in portfolio strategies.
Nowadays, with traditional financial assets like the US stocks and Treasury under pressure, many are turning to Bitcoin as a hedge.
The holdings of physical gold ETFs are also at the highest level since 2023, with JPMorgan estimated in 2025 that only the central bank will purchase around 900 tons of bullion in 2025, after obtaining 1,045 tons in 2025.
Meanwhile, the US Dollar Index has fallen to its lowest level since February 2022, igniting new fears about the dollar’s global status.
The weaker dollar could benefit exports, but timing is problematic.
“We’re seeing capital flights from once safest assets (US Treasury and equities) from the moment when the economy could fall towards a recession,” a senior economist told investors’ businesses every day.
On the compound interest issue, the US recorded a record $1.2 trillion trade deficit in 2024, but its net international investment position fell to $26.2 trillion.
But economists warn him that his plan to reverse these numbers through sudden tariffs.
“This kind of economic whiplash,” a JPMorgan analyst wrote, “It really drives capital to alternatives like gold and Bitcoin.”
