Gold surged above $5,000 per ounce, hitting a record high as geopolitical and trade tensions intensified.
The precious metal climbed to around $5,080 after gaining roughly 17% since the start of January.
Traders moved into gold amid fears of a potential US government shutdown and escalating tariff threats.
“A likely government shutdown just added fuel to the fire for precious metals,”
The Kobeissi Letter said.
Trade tensions rose after President Donald Trump threatened Canada with a 100% tariff over a China-related deal.
Gold reached the $5,000 milestone ahead of ether, settling a Polymarket bet placed last year.
Ether slid below $2,800 and is now more than 40% down from its August all-time high.
Silver also rallied sharply, breaking above $107 per ounce for the first time.
Bitcoin fell to a five-week low near $86,000, erasing its gains for the year.
The digital asset is now about 30% below its October peak of $126,000.
Analysts said the traditional correlation between bitcoin and gold has weakened significantly.
“Normally, in uncertain times, capital moves towards safe-haven assets such as US Treasuries and gold,”
Jeff Mei said, adding that investors are now favouring gold over treasuries.
At the time of reporting, Bitcoin price was $87,613.73.