Gold, often viewed as a representation of sound money, climbed 1% on Monday, reaching another record high and bringing its 2025 gain to 43%.
The metal, now priced at $3,721, increased around an hour after bitcoin, seen by some as a digital form of sound money, experienced a 24-hour drop of 3%, reducing its price to $112,000 and its year-to-date gain to 17%. This timing suggests that profits from bitcoin liquidations may have shifted to gold.
The two assets typically do not move in the same direction, though there are infrequent instances when both increase or decrease simultaneously, often with a brief lag. This time, the divergence is more pronounced.
Gold isn’t the only metal drawing interest. Silver rose 1.5% on Monday, nearing $44, its third-highest level since 1975, and is now up over 50% this year.
Notably, since the Federal Reserve reduced interest rates by 25 basis points on September 17, both gold and the S&P 500 have increased by about 1%. Meanwhile, U.S. treasury yields have risen, with the U.S. 10-year at 4.125% (up 2.5%) and the U.S. 30-year at 4.7% (up 2%).
The dollar strengthened, with the DXY index rising 1% to 97.5. A stronger dollar typically pressures risk assets, and bitcoin has fallen over 3.5% since the Fed’s decision.
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