TLDR
- Gold surged to a record high above $3,400 per ounce, gaining over $700 since the start of 2025
- Trump’s comments about Federal Reserve chair Powell and US-China trade tensions pushed gold prices higher
- Gold retreated from $3,500 mark as bulls paused amid overbought conditions
- US Bitcoin ETFs saw $381.3 million in net inflows on April 21, their largest single-day inflow since January
- ARK 21Shares Bitcoin ETF (ARKB) led with $116.1 million in inflows, while Bitcoin climbed to a four-week high above $88,500
Gold prices hit new record highs while Bitcoin ETFs saw their biggest inflows in months as investors sought refuge from economic uncertainty caused by trade tensions and central bank independence concerns.
Gold surged above $3,400 per ounce on Monday, reaching an all-time high of $3,430.18 before settling at $3,417.62, representing a 2.7% increase for the day. The precious metal has gained more than $700 since the start of 2025, with $100 of that increase coming in just a few days after passing the $3,300 mark last Wednesday.
The rally continued into Tuesday when gold briefly touched the $3,500 mark before pulling back. The retreat came as traders paused to assess the market after the rapid price increases that have left technical indicators showing extremely overbought conditions on short-term charts.
Several factors have contributed to gold’s impressive rise. President Donald Trump’s comments about Federal Reserve Chairman Jerome Powell have raised concerns about the central bank’s independence. Trump accused Powell of not cutting interest rates quickly enough and his team is reportedly studying whether they can remove Powell before the end of his term.
Trade War Tensions Fuel Safe-Haven Demand
US-China trade tensions have also played a key role in pushing investors toward safe-haven assets. China accused Washington of abusing tariffs and warned other countries against striking economic deals with the US at its expense.
“As tariff tensions continue to move at a fevered pitch, we continue to see gold prices move to the upside as a safe haven response,” said David Meger, director of metals trading at High Ridge Futures.
The dollar has tumbled to its lowest level in three years as investor confidence in the US economy weakened. A weaker dollar makes bullion more appealing for holders of other currencies, further boosting gold prices.
Geopolitical tensions have added to the mix of factors supporting gold. Russian forces launched 96 drones and three missiles into eastern and southern Ukraine after a short-lived Easter ceasefire, adding to the general sense of uncertainty in global markets.
Bitcoin ETFs Show Strong Institutional Interest
While gold has been making headlines, Bitcoin and its related investment products have also seen renewed interest. US-based Bitcoin exchange-traded funds (ETFs) recorded their largest day of net inflows since late January, with $381.3 million flowing into the 11 Bitcoin-tracking funds on April 21.
The ARK 21Shares Bitcoin ETF (ARKB) led the pack with $116.1 million in new investments. Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw the second-largest inflow with $87.6 million, while Grayscale’s Bitcoin Trust (GBTC) and Bitcoin Mini Trust ETF (BTC) saw combined net inflows of $69.1 million.
This surge in ETF investment marks the largest inflow day since January 30, when the funds received $588.1 million shortly after Bitcoin hit a peak and was trading above $100,000.
Market Indicators Point to Continued Optimism
The strong ETF inflows came despite US markets closing in the red on Monday after the Easter weekend break. The S&P 500 was down 2.4%, while both the Nasdaq and Dow Jones dropped 2.5%. In contrast, crypto markets held onto gains made over the long weekend, with total market capitalization reaching $2.84 trillion.
Bitcoin has climbed above $88,500, a four-week high, pushing its market value above $1.75 trillion for the first time since March 22. The cryptocurrency had hit a 2025 low of $74,773 on April 7, days after Trump announced tariffs on every country, which also caused a stock market slump.
Technical indicators for Bitcoin show growing investor optimism. Bitcoin’s futures open interest has risen 5% to $58.46 billion, indicating more traders are entering the market. The positive funding rate of 0.0068% suggests traders are betting on Bitcoin’s continued rise.
The put-to-call ratio for Bitcoin options is currently at 0.71, showing more call options are being traded than puts. This reflects growing investor confidence and expectations of upward price movement for the leading cryptocurrency.
Jim Wyckoff, senior analyst at Kitco Metals, offered a note of caution for gold investors: “These much bigger daily price moves in gold are one early clue this very mature bull market run is close to climaxing and that a near-term market top may be close at hand.”
Investors are now looking ahead to this week’s economic data, including Wednesday’s flash PMIs, which will offer fresh insights into global economic health and could influence both gold and cryptocurrency markets in the coming days.
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