Bitcoin News Today: Bitcoin's Surge Undermines Gold's Safe-Haven Status, Prices Drop Below $4,000

Gold Slips Under $4,000; Silver Near $46 as Safe Haven Bid Eases

Gold prices fell below $4,000 per ounce on October 24, marking a sharp reversal from record highs just days earlier, as investors unwound aggressive bets on the metal amid easing geopolitical tensions and shifting market dynamics. The yellow metal, which had surged to a peak of $4,375 on October 20, tumbled 6.69% intraday on October 21—the largest single-day drop since 2013—before stabilizing at $4,142 by October 23. Silver followed suit, trading near $46 per ounce as profit-taking and mixed global cues pressured bullion markets, according to an analyst's outlook.

The decline came as U.S.-China trade negotiations showed progress, with officials from both nations reaching a preliminary consensus on key issues including tariff suspensions and export controls. The development, coupled with softer demand post-Diwali and cautious sentiment ahead of the U.S. Consumer Price Index (CPI) data release on October 24, weakened gold's appeal as a safe-haven asset, according to an Economic Times report. Analysts noted that the recent volatility had stripped away speculative froth, returning the market to a more balanced state. "The two-day correction has made gold healthier, and long-term fundamentals remain intact," said Praveen Singh, a commodities analyst in Mumbai.

Silver mirrored gold's trajectory, with futures on the MCX slipping 0.93% to ₹1,47,126 per kilogram. Despite a 65% annual gain and an all-time high of $54.47 earlier this year, silver faced profit-booking pressure amid expectations of a Fed rate cut and improved U.S.-China relations, according to a Reuters forecast. Structural supply deficits and robust demand from sectors like solar technology and electric vehicles continue to underpin its outlook, but near-term volatility persists.

The U.S. dollar's strength and a rotation into risk assets also weighed on gold. Bitcoin, for instance, surged past $115,000 on weekend trade deal optimism, outperforming both equities and bullion, as noted in TradingView coverage. Investors increasingly view cryptocurrencies as a "new gold," with platforms offering stable returns through cloud mining and institutional adoption, as highlighted in a Yahoo Finance piece. This shift highlights a broader redefinition of safe assets in an era of inflation and geopolitical uncertainty.

Global markets are now focused on the U.S. CPI data and the Trump-Xi meeting, with analysts expecting further clarity on trade tensions and monetary policy. While gold ETF holdings remain near record highs at 98.64 million ounces, COMEX inventory has fallen 13.55% since April's peak, reflecting a tightening balance of supply and demand, according to Business Standard.