Ethereum News Today: Gold Surges Past $3,365 as Altcoins Retreat 5-6% Amid Geopolitical Tensions, Weak Dollar

Gold’s recent surge has intensified a shift in capital away from cryptocurrencies, with analysts highlighting the inverse relationship between the two asset classes amid rising geopolitical tensions and a weakening U.S. dollar [1]. The price of gold broke above $3,365, signaling a potential short-term retreat for risk-on assets like Ethereum (ETH) and other altcoins. According to analyst Michaël van de Poppe, this technical breakout could indicate a temporary reallocation of investor funds toward safe-haven assets, as crypto markets consolidate after reaching multi-year highs [1].

The altcoin market, which had been gaining momentum, has since shown signs of retracement. Ethereum, which hit $3,860 in recent weeks, has since softened, while tokens like XRP, ADA, and Solana (SOL) have fallen 5.24%, 6.33%, and 2.71%, respectively, from their peaks [1]. This correction aligns with broader macroeconomic trends, as trade disputes between the U.S. and EU, coupled with a declining U.S. Dollar Index (DXY) at 97.40, have amplified demand for non-yielding assets like gold [2]. Analysts suggest that the EU’s rumored $72 billion retaliatory package against U.S. tariffs has further solidified gold’s appeal as a hedge against policy-driven market disruptions [2].

The U.S. Federal Reserve’s cautious approach to rate cuts has also contributed to gold’s resilience. With markets pricing in a 94% probability of no change at the July 30 policy meeting, investors have turned to gold as a store of value amid persistent inflationary pressures and U.S. debt concerns [2]. Meanwhile, the recent U.S.-Japan trade deal briefly boosted risk-on sentiment, causing gold prices to dip but failing to reignite crypto’s upward momentum [3]. This dynamic underscores the growing divergence between traditional safe-haven assets and speculative crypto markets in a “risk-off” environment.

Technical analysis of gold’s price action reinforces its dominance. A breakout above the $3,420 level, supported by a rising Relative Strength Index (RSI), suggests continued buying pressure as investors seek protection from volatility [2]. However, a reversal below $3,400 could trigger a retest of critical support levels, highlighting the market’s sensitivity to geopolitical and macroeconomic developments [2]. For now, the inverse correlation between gold and crypto remains pronounced, with van de Poppe forecasting further altcoin corrections if gold continues its ascent [1].

Investors are now navigating a strategic crossroads. While cryptocurrencies remain tied to speculative narratives and regulatory uncertainties, gold’s role as a de facto safe-haven asset appears entrenched in the current climate. This dynamic is likely to persist as trade tensions and inflationary pressures dominate the global outlook.

Source: [1] [Gold Price Breakout Causes Pullback in the Altcoin Market] [https://coinedition.com/gold-breakout-signals-short-term-altcoin-market-pullback/] [2] [Gold breaks above $3430 as the US Dollar weakens] [https://www.fxstreet.com/analysis/gold-breaks-above-3-430-as-the-us-dollar-weakens-202507230716] [3] [Gold prices slip lower as U.S.-Japan trade deal hits ...] [https://www.investing.com/news/commodities-news/gold-prices-fall-as-usjapan-trade-deal-boosts-risk-appetite-dents-havens-4147244]