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Gold prices have continued to soar in recent weeks, once again stealing the attention of market participants amid global economic and political turmoil. The precious metal is reaffirming its position as a mainstay safe haven asset, driven by complex global dynamics, from trade tensions to geopolitical competition between economic giants such as the United States and China.
Tariff Policy and the Domino Effect on Gold
One of the main triggers for the rise in gold prices is the global economic uncertainty triggered by the tariff policy implemented by former US President Donald Trump. This move triggered a domino effect that shook the stability of the world market. Trade tensions, particularly between the US and China—two of the world’s largest economies—created an erratic atmosphere, prompting investors to turn to gold as a hedge.
Leading market analyst RLinda, in a report released on April 10, called gold the main barometer of global economic conditions. “Gold reflects the level of risk in the market. When uncertainty increases, the price of gold skyrockets. Conversely, when risks subside, the price tends to correct,” she said.
RLinda predicts that if geopolitical tensions continue, the price of gold has the potential to break through the US$3,200, US$3,300, and even US$3,500 levels, especially if the tariff policy that was postponed is re-enacted.
Bitcoin: The “Digital Gold” Still Looking for a Foothold
On the other hand, Bitcoin, often dubbed “digital gold,” is actually moving in the opposite direction to gold. As the price of gold surged, the value of Bitcoin was depressed below US$80,000. However, some investors remain optimistic about the future of this crypto, seeing it as a safe haven alternative amid declining confidence in fiat currencies and conventional assets.
Based on data from New Hedge, the correlation between gold and Bitcoin shows a significant difference. Although both are considered as hedging assets, the market has not fully equated the perception of the two. At just 16 years old—much younger than gold, which has been a symbol of wealth for centuries—Bitcoin is still in the proofing stage.
Bitcoin Adoption on the Global Stage
Despite facing challenges, Bitcoin is showing promising development. The adoption of this crypto is no longer limited to institutions, but is starting to penetrate to the state level. Russia, for example, has used Bitcoin for oil transactions with China and India as a way to circumvent international sanctions. In the US, the formation of the Strategic Bitcoin Reserve also signals recognition of the potential of this asset.
These steps reinforce the view that Bitcoin is no longer just a speculative bubble, but is beginning to transform into a strategic tool in the global financial system. However, to achieve parity with gold, Bitcoin still needs time and broader market confidence.
Gold Remains King, Bitcoin Awaits Its Turn
Currently, gold remains the top choice for investors amid global uncertainty, while Bitcoin continues to struggle to prove itself as “digital gold.” With evolving geopolitical and economic dynamics, these two assets will remain in the spotlight, each with unique roles and challenges on the world financial map.
