Bitcoin News Today: Gold Replaces Faith as Trump Undermines Dollar Trust

Gold surged to a record high of $3,508.50 per ounce early on Tuesday, continuing a year-long trend of gains that has seen the precious metal rise by nearly 33% in 2025. This sharp increase reflects a combination of global economic uncertainty, geopolitical tensions, and concerns over U.S. monetary policy. Analysts attribute the surge to a mix of factors including U.S. President Donald Trump’s aggressive stance on trade and his ongoing criticism of the Federal Reserve, which has raised questions about the central bank’s independence. The weakening U.S. dollar has also provided additional support to gold, which is considered a traditional safe-haven asset in times of macroeconomic instability.

The role of geopolitical events has further amplified investor demand for gold. Analysts such as Adrian Ash of BullionVault and Suki Cooper from Standard Chartered have highlighted the impact of global events, including Russia’s invasion of Ukraine and the ongoing U.S.-China trade tensions. These events have heightened uncertainty in global markets, prompting investors to seek alternative assets that are less correlated with traditional financial systems. In addition, Trump’s actions—such as his attempts to influence or replace key Fed officials—have fueled concerns about the future of U.S. monetary policy, further reinforcing gold’s appeal as a store of value.

The demand for gold has also been supported by continued interest from major markets like China and India, which are among the largest consumers of gold jewelry and investment products. Traditionally, surges in gold prices have led to reduced demand in these markets due to affordability concerns. However, this time, investors in both countries have shifted their focus toward gold bars and coins, allowing the market to maintain upward momentum. This shift highlights the growing perception of gold as not just a luxury good but also as a tangible hedge against inflation and currency devaluation.

Goldman Sachs has taken a notably bullish stance on gold, forecasting that prices could reach $5,000 per ounce if Trump’s ongoing efforts to undermine the Federal Reserve’s independence lead to a broader loss of confidence in U.S. financial markets. The bank’s research highlights the potential for a scenario where inflation rises, bond prices fall, and the U.S. dollar loses its status as a global reserve currency. In such a case, gold could serve as a critical alternative store of value. According to Samantha Dart, a Goldman Sachs analyst, even a small shift in capital from U.S. Treasuries to gold could significantly drive up the price of the precious metal.

This growing uncertainty has also prompted renewed attention to gold’s role in diversified portfolios. While gold has historically served as a hedge against stock market volatility, the emergence of Bitcoin as a potential alternative has introduced new dynamics. Some analysts argue that Bitcoin’s low correlation with U.S. Treasuries makes it a valuable addition to investment strategies, particularly during periods of rising interest rates or fiscal expansion. However, gold has maintained a stronger track record during equity downturns, reinforcing its traditional role as a safe-haven asset. For now, both metals appear to serve distinct but complementary roles in the portfolio of risk-averse investors.

Despite the current optimism around gold’s performance, there are concerns about the broader economic implications of its rapid ascent. A sharp rise in gold prices could signal deeper market vulnerabilities, including potential erosion of confidence in fiat currencies and the need for rethinking traditional investment strategies. As Trump’s influence on U.S. monetary policy remains a wildcard, and geopolitical tensions persist, gold is likely to remain a focal point for investors seeking protection in an increasingly uncertain economic landscape.

Source: [1] Gold price hits record high as investors seek safety (https://www.bbc.com/news/articles/ceqyq7r8703o) [2] The price of gold could hit $5000 if Trump keeps meddling ... (https://fortune.com/2025/09/04/gold-price-5000-trump-fed-goldman-sachs/) [3] Bitcoin or Gold: Which Is the Better Hedging Asset in 2025? (https://www.coindesk.com/markets/2025/08/31/given-trump-s-pro-crypto-stance-is-it-time-to-fully-ditch-gold-in-favor-of-bitcoin) [4] Bitcoin vs. Gold: Which will outperform in 2026? (https://finbold.com/bitcoin-vs-gold-which-will-outperform-in-2026/) [5] Gold hits a new all-time high: What does this mean for ... (https://www.mitrade.com/insights/news/live-news/article-2-1099646-20250905)