Fears from Trumpian Tariffs Drive Investors Towards Gold

Fears from Trumpian tariffs are driving more people towards Gold, seemingly overshadowing Bitcoin (BTC) as a safe-haven asset. Concerns over US economic instability are affecting stock and crypto markets. Bullion prices are benefiting from trade war tensions, climbing above $2,900 an ounce, while Bitcoin fell 16% during the same period.

Gold prices experienced a rally on Tuesday, regaining stability after a slight pullback at the start of March. Spot gold saw a 0.4% increase, reaching $2,900.78 an ounce as of 7:30 AM UTC. This rally was supported by a weakening US dollar spot index, which dropped to 103.5, a 24-hour decrease of 0.2%.

The surge in gold follows President Donald Trump’s comments during a Fox News interview where he described the US economy as being in a “period of transition” due to new trade policies.

Gold Stands Against BTC as Profit Taking Resumes

Gold’s more resilient performance against the dollar is pushing investors to shift away from Bitcoin, which saw a decline of over $15,400 in the past month. According to Coingecko, BTC was trading at $81,416, reflecting a 0.3% decline over the past 24 hours and a 2.8% drop over the past week.

A March 11 X insight from market intelligence platform Santiment reported that Bitcoin’s downward trend began in mid-February when major stakeholders started cashing out profits. Between February 20 and March 8, about 22,702 BTC, worth nearly $1.8 billion, were transferred from private wallets to exchanges, indicating intent to sell.

Standard Chartered analyst Suki Cooper mentioned to Bloomberg that gold may face challenges with weak demand in major markets like India and China. However, she suggested that fresh highs could be achieved this year if inflows into gold ETFs compensate for declining physical purchases.

Conversely, economist Peter Schiff criticized the US government for holding BTC, referencing its poor performance. He noted that Bitcoin’s fall below $77K represents a 30% drop from its January record high, questioning the rationale of holding it as a reserve asset.

Bitcoin Weakness Will Likely Continue

Bitcoin’s current price of $81,055 is near a critical pivot point at $80,746, where bears might prompt investors to sell. Technical indicators suggest a potential short-term pullback instead of a full trend reversal. The cryptocurrency’s negative momentum of -9.94% and the relatively low Relative Strength Index (RSI) of 37.44 indicate ongoing selling pressures. Recent data showed over $294 million liquidated from BTC’s market in just one day.

Market volatility has been high since late February, but support may form at the $78,000 level if selling pressure continues. Bitcoin’s Moving Average Convergence Divergence (MACD) has dropped below the signal line, and the Average Directional Index (ADX) stands at 69.9, indicating that it may take weeks for the coin to recover from the current downward trend.