Gold Hits New Highs as Bitcoin Surpasses $90,000 Amid US Dollar Concerns

On Tuesday, gold prices soared to record levels, hitting over $3,500 per troy ounce before settling at around $3,426 as investors sought safe havens amid concerns over the US dollar's strength. Simultaneously, Bitcoin climbed past the $90,000 mark, marking its highest level since early March. Analysts attribute this rally to President Donald Trump's turbulent trade policies and growing skepticism around the dollar's stability. JPMorgan analysts highlighted the surge in gold, primarily driven by demand from central banks and retail investors, projecting that prices could average $3,675 per ounce by the fourth quarter and potentially reach $4,000 by mid-2026. Bitcoin also saw significant movement, narrowing its negative returns for the year to under 5%, with various Bitcoin ETFs experiencing a substantial rebound. The ICE U.S. Dollar Index fell more than 1% on Monday, upending traditional dollar-denominated asset investments. The dynamics unfold in a context of investor unrest about geopolitical issues and monetary policy instability, as Trump's recent social media messages suggested the Fed should act to lower interest rates despite signs of cooling inflation. Observers including financial strategists predict a capital flight from traditional U.S. assets, asserting that gold and Bitcoin are likely to gain traction as hedges against the ongoing uncertainty. The volatility in the market is amplified with U.S. Treasury yields under pressure, raising alarms about potential recession effects. This complex interplay of market forces indicates that investors may need to recalibrate their portfolios to account for both risk and opportunity in alternative assets.