- Central bank buying and geopolitical risks boost gold past $3,400/oz.
- Gold outperforms S&P 500, up 100% since 2020.
- Crypto market sees 3% surge amid gold rally.
Gold prices climbed beyond $3,400/oz on April 21, 2025, marking a historic peak for the precious metal. The surge took place amid geopolitical tensions and strong central bank buying.
This event illustrates gold’s resurgence as a safe haven, with spot prices jumping 29% this year, outpacing other asset classes like equities.
Gold Hits Historic $3,400/oz Amid Global Strife
Spot gold prices reached $3,400/oz for the first time, influenced by central banks and geopolitical strains. Central bank purchases and fears over inflation contributed significantly. Geopolitical tensions, such as the Russia-Ukraine conflict, and U.S. policies under President Donald Trump have further spurred demand.
Financial analysts noted a shift towards gold as a strategic hedge, reflecting its 100% growth since 2020. Market analysts highlighted uncertainty over Federal Reserve leadership and U.S. tariff policies as key factors in the rally.
Kevin Hassett, White House Economic Adviser, U.S. Government, said, “The Trump administration’s consideration of replacing Federal Reserve Chair Jerome Powell is fueling uncertainty and driving demand for gold as a safe-haven asset.”
Crypto Sees Boost as Gold Embraces Safe Haven Role
Did you know? Amidst geopolitical tensions in 2025, gold prices hit a milestone, achieving 55 all-time highs in a single year, underscoring its pivotal role as a financial refuge.
Bitcoin’s market cap surged to $1.73 trillion on April 21, 2025, as per CoinMarketCap. Currently priced at $87,178.50, Bitcoin saw a 3.42% increase over 24 hours, aligning with the gold surge that boosted digital market interest.
Experts suggest global economic uncertainties may further link gold and cryptocurrency trends. Historical indicators highlight gold’s traditional safe-haven role, signaling potential for intensified market activity among digital assets amid ongoing fiscal policy adjustments. Trump’s crypto policy may also play a significant role in shaping future cryptocurrency dynamics.
Source: https://coincu.com/333451-gold-breaks-historic-3400-mark/