Gold Reaches New Heights as Bitcoin Faces Setbacks

Gold prices soared to an all-time high on Wednesday, driven by the Federal Reserve's forecast of slower economic growth combined with rising inflation. This development has heightened the demand for gold as a safe-haven asset.

What occurred: Spot gold prices peaked at $3,056 per ounce during the day, before experiencing a slight pullback. Meanwhile, gold futures on the Commodity Exchange climbed to $3,060.20.

The yellow metal has been making history this year, propelled by a negative shift in market sentiment due to President Donald Trump’s aggressive tariff policies. So far this year, spot gold has increased by over 16.21%.

On the same day, the central bank decided to keep interest rates steady while reducing its 2025 GDP growth outlook from 2.1% to 1.7%. This further fueled gold's price increase.

Additionally, the rise in gold has had a positive effect on gold-backed cryptocurrencies as well. Tether Gold and PAX Gold have seen gains of 16.67% and 16.42%, respectively, since the beginning of the year.

Cryptocurrency	Gains +/-	Price (Recorded at 1:44 a.m. ET)
PAX Gold (PAXG/USD)	+16.67%	$3,065.24
Tether Gold (CRYPTO: XAUt)	+16.42%	$3,052.71

This surge in gold prices sharply contrasts with the performance of the broader cryptocurrency market.

The overall market capitalization of cryptocurrencies has declined by 14% from $3.6 trillion to $2.8 trillion since the start of the year, with notable barometer Bitcoin (BTC/USD) declining over 8%. Interestingly, Bitcoin has often been referred to as “digital gold” by its supporters.

Current Price Action: As of the latest updates, spot gold is trading at $3,046.14, down 0.10% over the past 24 hours, as per data from reliable sources.

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Gold, Bitcoin, Cryptocurrency