Investors Flock to Bitcoin and Gold Amid Geopolitical Tensions and Trade Uncertainty

Investors are turning to traditional safe-haven assets like gold and digital alternatives like Bitcoin as geopolitical tensions and economic uncertainty escalate. Gold prices soared above $3,350 per ounce, while Bitcoin hovered near $96,500, close to its record highs. With the Federal Reserve expected to hold interest rates steady, all eyes are on Jerome Powell’s upcoming speech for direction on inflation and future monetary policy. Speculative ETF inflows and central banks shifting away from the U.S. dollar are adding further support to these assets.

The market is also reacting to intensifying conflict in the Middle East. A missile strike on Tel Aviv’s Ben Gurion Airport by Houthi forces injured several people and prompted Israel to retaliate with airstrikes, escalating regional tensions. These developments are increasing the appeal of both gold and Bitcoin as investors seek protection from market shocks and geopolitical instability.

At the same time, President Trump’s proposed tariffs on imported pharmaceuticals and entertainment content have rattled global markets. Investors are growing concerned about possible trade retaliation and disruptions, which is driving demand for alternative assets. While Bitcoin currently trades at $96,730—a 3% daily gain—analysts warn that failure to hold the $95,000 level could trigger a bearish correction.

Amid all this, diplomatic efforts appear to be quietly taking shape. U.S. Treasury Secretary Scott Bessent is heading to Switzerland for trade talks with China, sparking cautious optimism. Chinese officials have acknowledged the possibility of tariff adjustments, which could cool tensions. In the meantime, Bitcoin remains buoyed by speculation and monetary policy expectations, while gold continues to shine as uncertainty dominates the global outlook.

Source: Nairametrics