Gold has outperformed Bitcoin in 2025, with the precious metal surging over 73.6% year-to-date, while Bitcoin has faced challenges, declining by around 30% from its October peak. Several factors contribute to this divergence ¹ ²:
- *Central Bank Demand*: Central banks have been aggressively buying gold, with net acquisitions reaching 900 tons in 2025, signaling a loss of confidence in fiat currencies and a shift towards traditional safe-haven assets.
- *Inflation and Geopolitical Tensions*: Rising inflationary pressures, geopolitical conflicts, and trade wars have amplified investor demand for gold as a hedge against uncertainty.
- *Investor Sentiment*: Retail investors, particularly Gen Z and Millennials, are increasingly favoring gold over Bitcoin, with Google search data showing "buy gold" outpacing "buy Bitcoin" throughout 2025.
*Key Statistics:*
- *Gold Price*: $4,497 per ounce (record high)
- *Year-to-Date Gain*: 73.6% (gold), 130% (silver)
- *Bitcoin's Decline*: 30% from October peak
*Expert Insights:*
- *JPMorgan Analysts*: Project gold could reach $5,000 per ounce by the fourth quarter of 2026.
- *Capital Economics*: Forecasts gold could fall to $3,500 by the end of 2026 as speculative buying subsides.
