Investors turn to gold and Bitcoin during global instability
Geopolitical tensions have contributed to a volatile market environment, driving demand for safer investments like gold and Bitcoin.
Gold and Bitcoin increased as investors waited for the Federal Reserve’s next move. At the same time, rising global tensions and trade worries kept markets on edge.
Spot gold rose 0.7% to $3,357 per ounce on Tuesday, driven by safe-haven demand. US gold futures added 1.3%, supported by fresh interest from Chinese investors. Central banks also continued moving away from the dollar, boosting gold’s appeal.
Bitcoin hovered near February highs, trading around $97,500. Markets remain sensitive to dovish signals that could lift Bitcoin closer to its previous peak near $100,000.
The Federal Reserve is expected to keep interest rates steady between 4.25% and 4.50%. Investors are closely watching for signs of whether persistent inflation and slowing consumer demand will delay potential rate cuts expected later this year.
Tensions flared after a Houthi missile landed near Tel Aviv, leading to Israeli strikes in Yemen. At the same time, Trump’s new tariff plans rattled trade nerves. Even so, Bitcoin stayed strong, fuelled by ETF demand and rate cut hopes.
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