On February 11, gold prices soared to an unprecedented $2,942.70 per ounce, fueled by growing concerns that President Donald Trump’s latest tariff measures could escalate into a global trade war. Although prices later dipped slightly, settling above $2,900, the brief surge propelled gold’s year-to-date gains to nearly 11%.
As reported by Reuters, profit-taking among investors contributed to gold’s subsequent pullback. Nevertheless, the precious metal continues to uphold its reputation as a reliable safe-haven asset, with market sentiment remaining largely optimistic.
Kyle Rodda, a financial market analyst at Capital.com, highlighted the impact of trade tensions on gold demand, stating that fears of a global trade war are prompting increased interest in physical bullion and financial gold investments. He also noted that gold’s appeal aligns with a broader trend of de-dollarization in global markets.
Gold vs. Bitcoin: Safe-Haven Status and Market Perceptions
Due to this dynamic, the buyers of the the previous metal are shipping to the U.S. to sidestep potential tariffs are “somewhat price insensitive,” Rodda explained.
Meanwhile, Bitcoin—often touted as gold’s digital counterpart—saw a decline of over 2% on February 11, slipping from $98,000 to $95,000. This downturn challenges the narrative that Bitcoin serves as a reliable safe-haven asset comparable to gold.
Gold advocates, including outspoken Bitcoin critic Peter Schiff, have reinforced this skepticism. Schiff, who anticipates gold surpassing $3,000, took to X to question Bitcoin’s “digital gold” reputation.
“In 2021, when Bitcoin peaked at $69,000, its market capitalization equaled 10.72% of gold’s market cap. Today, despite Bitcoin reaching $98,000, its market share relative to the precious metal has dropped to 9.95%. If Bitcoin is truly the new gold, why has its relative importance diminished over the past four years?” Schiff argued.
In addition to challenging Bitcoin advocates, Schiff also criticized the U.S. media and Wall Street, accusing them of downplaying gold’s “spectacular” performance or attempting to undermine its reputation. He argued that gold’s detractors are now realizing a fundamental truth about the metal: “Gold is one of the few metals that doesn’t tarnish.”
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