"It's been a happy few weeks for those who hold stocks of gold and bitcoin in their trading arsenals. The commodities have both reached record highs as investors continue to back them. Gold smashed through the $3,900 (3,334) a troy ounce barrier this week a troy ounce being the unit of weight for precious metals and equivalent to 31.1 grams. Meanwhile, on Sunday (October 5), the world's oldest and best-known cryptocurrency, bitcoin, hit a record when it broke through the $125,000 barrier for the first time, before falling back a little. It has so far been a bumper 2025 for both commodities."
"Gold has been on its biggest rally since the 1970s, with the price jumping by more than 50% since January 1. Bitcoin has had some falls during a turbulent 2025, but its value has risen by around a third since the start of the year. Why is it happening? Long seen as a so-called safe-haven asset which investors back during periods of uncertainty, gold has been on a steep upward curve since late 2018, with its value having increased by more than 300% since then."
"Uncertainty has been a factor in the current rally, with US President Donald Trump's reciprocal tariffs in April fuelling concerns over the global economy, the sustainability of US government debt levels and the future viability of the US dollar as the world's reserve currency. There has been also been ongoing geopolitical uncertainty as a result of Russia's war in Ukraine and the war in Gaza. Another recent factor has been the US government shutdown."
Gold and bitcoin reached record levels in 2025, with gold topping $3,900 per troy ounce and bitcoin briefly exceeding $125,000. Gold has jumped more than 50% since January 1 and has risen over 300% since late 2018. Bitcoin has gained roughly a third year-to-date despite volatility. Investor demand for safe-haven assets increased amid concerns about reciprocal US tariffs, global economic stress, mounting US government debt, and doubts about the dollar's reserve status. Geopolitical conflicts in Ukraine and Gaza and a US government shutdown intensified uncertainty. Yen weakness and shifting currency support also pushed flows toward gold and bitcoin.
Read at www.dw.com
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