Key Takeaways:
Gold surged 1% to $3,721, extending its 2025 gains to 43%.
Silver climbed 1.5%, nearing $44 and up 50% year-to-date.
Bitcoin slipped 3% to $112,000, erasing post-Fed momentum.
Divergence highlights investor rotation from crypto into metals amid safe-haven demand.
Gold extended its historic rally on Monday, climbing to a new all-time high of $3,721 just an hour after Bitcoin (BTC) fell sharply to $112,000, raising questions of whether profit-taking in crypto is fueling fresh flows into metals.
The move underscores a shifting dynamic between the two “sound money” assets: while Bitcoin is down 3% in 24 hours and 3.5% since last week’s Fed rate cut, gold has added nearly 43% in 2025.
Gold Gains as Bitcoin Falters
The yellow metal rose 1% on Monday, notching another record high as demand for traditional safe havens accelerated. In contrast, Bitcoin’s year-to-date gains now sit at just 17%, with recent volatility highlighting its risk-sensitive profile compared to gold’s defensive appeal.
Silver also joined the rally, climbing 1.5% to near $44, its third-highest level since 1975, bringing year-to-date gains above 50%.
Fed Policy, Dollar Strength Drive Divergence
The moves come in the wake of the Federal Reserve’s 25 bps rate cut on Sept. 17, a decision that initially lifted risk assets. Yet since then:
Gold and the S&P 500 are both up about 1%.
Bitcoin has slipped more than 3.5%.
U.S. Treasury yields rose, with the 10-year at 4.125% (+2.5%) and the 30-year at 4.7% (+2%).
The U.S. Dollar Index (DXY) climbed 1% to 97.5, pressuring crypto and other risk-sensitive assets.
While gold and Bitcoin occasionally trade in sync, Monday’s stark divergence suggests that capital may be rotating out of crypto and into precious metals as investors reassess liquidity conditions and hedge against currency risk.
