Gold continued its strong upward trend, hitting a record $4,739 per ounce in futures as investors seek safety during times of market uncertainty. Bitcoin, often seen as a digital safe haven, meanwhile fell to $90,929, reflecting broader market volatility.
In brief
- Gold continued its strong rise, hitting a record $4,739 per ounce as investors sought safety during times of market uncertainty.
- Geopolitical developments, including U.S. tariff announcements, have intensified fears of a broader trade conflict and roiled global markets.
- Bitcoin fell to around $90,000, reflecting increased volatility and a cautious investor mood.
Gold and Silver Soar as Bitcoin Faces Volatility
Gold's rise is part of a broader rally in precious metals. Over the past 12 months, gold is up more than 81%, marking one of its best-ever annual performances. Silver followed a similar path, demonstrating its appeal as a hedge against volatility. According to Kobeissi Letter analysis, silver recently reached $94.68 per ounce and has already achieved five record highs in 2026.
The sustained momentum in gold and silver highlights their role as established safe-haven assets during times of economic uncertainty. As these metals continue to attract significant investment, cryptocurrencies are experiencing increased volatility.
Geopolitical tensions impact markets
Bitcoin's recent weakness coincides with renewed geopolitical concerns following US 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, which is due to come into force from February 1. Trump has indicated that these tariffs could reach 25% by June if negotiations fail, in line with his pursuit of what he has described as the “complete and total purchase of Greenland.”
Trump's announcement immediately reignited fears of a broader trade confrontation, prompting European leaders to hold emergency meetings and take measures that escalated market tensions.
This tension is being felt across global markets, including stock indexes, bond yields and investor sentiment across the globe.
- U.S. stock futures reflected immediate concern in the market, with Dow Jones futures showing a 378-point decline at the open, S&P 500 contracts down 0.9% and Nasdaq 100 contracts down about 1.1%, suggesting a soft start to the session.
- In Japan, bond markets reacted sharply as the yield on 40-year government bonds rose more than 5 basis points to 4%, its highest level since the bond's introduction.
- Shorter-term Japanese bonds suffered even steeper declines, with the 10-year yield rising more than 6 basis points to 2.3%, a level not seen since 1999.
- The yield on 20-year government bonds jumped about 9 basis points to 3.35%, underscoring growing investor caution and the broader impact of global uncertainty on fixed-income markets.
Crypto tumbles as gold could boost Bitcoin
Geopolitical and financial developments have affected the broader cryptocurrency market beyond Bitcoin. Ethereum fell more than 3% in 24 hours, while XRP and Solana lost more than 2% in the same period, reflecting a broader sell-off as investors sought safety in times of uncertainty.
Separately, Bitcoin investor and commentator Lark Davis pointed out that gold's momentum could influence capital flows into digital assets. He observed that gold's approach toward $5,000, a key level indicated by the 4.618 Fibonacci extension, could prompt an investment rotation from precious metals to Bitcoin if the metal continues to accelerate.
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