Gold and Bitcoin Surge in 2025 Amid Geopolitical Tensions and Uncertainty
Gold and Bitcoin are surging in 2025, driven by a mix of geopolitical tensions, economic uncertainty, and institutional demand. Both assets have seen remarkable gains, with gold up over 50% and Bitcoin rising by a third. Notably, Bitcoin briefly touched $125,000 in early October.
Geopolitical factors, such as Russia's war in Ukraine and US government shutdowns, have fuelled Gold's rally. Its price has soared to over $3,900 per troy ounce, the highest since the 1970s. Central banks and gold-backed ETFs have been significant contributors to this surge.
Bitcoin's rally is influenced by political developments like Donald Trump's reelection prospects and institutional demand. Historically, October has been a strong month for Bitcoin, and this year is no exception. The Japanese yen's weakening has also boosted gold demand.
Analysts from Deutsche Bank predict that central banks could hold both gold and Bitcoin by 2030 due to declining volatility and increased demand.
Gold and Bitcoin's rallies in 2025 reflect investors' appetite for safe havens amidst uncertainty. As geopolitical risks and economic instability persist, these assets are likely to remain in focus. Their performance this year sets the stage for potential further gains or shifts in the market in the coming months.
