Gold nears $3,000 as Bitcoin falters during market slump

Gold has surged to a new record high, nearing $3,000 per ounce, as financial markets experience a significant downturn.

The precious metal's rise comes amid declining stock indices and a sharp drop in Bitcoin CRYPTO:BTC), reinforcing gold’s reputation as a safe-haven asset during economic uncertainty.

On Thursday, U.S. stocks continued their downward trajectory.

The Nasdaq fell by 1.7%, and the S&P 500 dropped 1.2% by midday.

Bitcoin mirrored this trend, retreating from $85,000 to $81,000 within 24 hours, marking a 1% decline.

Over the past three weeks, the Nasdaq has lost nearly 15%, while Bitcoin has plunged by 20%.

In contrast, gold has gained approximately 1% during the same period.

Gold exchange-traded funds (ETFs) have seen substantial inflows, adding around 3 million ounces of gold in the past month—the largest increase since early 2022.

Meanwhile, U.S.-listed spot Bitcoin ETFs have recorded $5 billion in outflows since February, marking their worst performance in a year.

This shift highlights investors' preference for gold over riskier assets like cryptocurrencies during the current market correction.

The upward momentum in gold prices echoes patterns observed in late 2024 when gold climbed nearly 40% to $2,800 per ounce while Bitcoin remained stagnant.

Analysts attribute this trend to gold’s enduring appeal as a hedge against economic and geopolitical risks.

"Gold is doing what it has done for centuries—providing stability in times of distress,"  one expert noted.  

Market forecasts suggest that gold could break through the $3,000 mark soon.

Analysts predict further gains if inflationary pressures persist or geopolitical tensions escalate.

Central banks’ ongoing purchases of physical gold are also expected to support prices.

Bitcoin’s decline contrasts sharply with its performance following former President Trump’s election victory in late 2024 when it surged past $100,000.

However, the current market environment underscores the volatility of cryptocurrencies compared to the relative stability of gold.

At the time of reporting, the Bitcoin (BTC) price was $82,032.13.