Gold and Bitcoin are rallying together, Is the Dollar in trouble?

Gold is on a record-breaking spree but this time it’s screaming stagflation fears, tariff chaos, and a weaker dollar. Digital gold, Bitcoin, is also on its way up as global economic conditions remain uncertain and investors are flocking to a safer haven.

Trump’s April 2 announcement of “reciprocal tariffs” has thrown dozens of trade relationships into chaos. While some countries caught a temporary break, the US has escalated its economic war with China, and the market is reacting.

Gold hits $3,399 as the dollar tanks

Data shows that spot gold surged over 2% to hit an all-time high of $3,389/oz early Monday, with US gold futures touching $3,399. It is a rally fueled by global economic jitters and a dollar in freefall. The dollar index (DXY) hit a three-year low, making gold an even healthier hedge for investors holding other currencies.

Spot silver added 0.3% to $32.66 an ounce, platinum gained 0.3% to $969.68, while palladium fell 0.3% to $959.43. Markets are now deeply pricing in geopolitical risk, keeping an eye on Trump’s tariffs, economic slowdown, and central banks buying all combine into a perfect storm for bullion.

Absolutely incredible:

Gold with ANOTHER all time high and set to cross above $3,400/oz for the first time in history.

Gold is now officially up +100% since 2020 compared to a +86% gain in the S&P 500.

That’s right, gold is OUTPERFORMING the S&P 500 since the pandemic.

Truly… pic.twitter.com/u5KdQ9IBQ0

— The Kobeissi Letter (@KobeissiLetter) April 21, 2025

It is for the 55th time in 12 months that Gold has hit ATH, and now Bitcoin has also joined the race. The narrative in both Gold and Bitcoin is aligning for the first time in years. This suggests that a weaker US Dollar and more uncertainty might be on the way. 

However, US President Trump’s “non-tariff cheating” list is one of the best things to happen to gold all year. With this push, GOLD is set to cross above $3,400/oz for the first time in history. It has outperformed the S&P 500 since the pandemic. Gold is up by 100% since 2020 compared to an 86% gain in the S&P 500.

Bitcoin bounces while Wall Street wobbles

With the downturn in the traditional trading market, the digital assets market surged by more than 3% over the last day. Its cumulative market cap stood at $2.76 trillion with a trading volume of $67 billion. CoinGlass data shows that over 90K traders, placing bets on futures, got liquidated in the last 24 hours. The total liquidation of both long and short bets stood at around $204 million. The largest single liquidation order of BTC/USD, valued at $2.75 million, happened on Bybit.

Bitcoin has managed to regain the upward momentum over the last week. Bitcoin price rose by 3% in the past 7 days. BTC is trading at an average price of $87,426, at press time. However, it is still down by almost 20% from its ATH of $109K.

US stock market futures officially open lower after the 3-day Easter weekend. As of now, no trade deals have been announced but Trump has stated that those who criticize tariffs are “bad at business.” On the other side, China warned others not to cut side deals with the US at its expense and still, 78 days are left in the “reciprocal tariff” pause.

Reports suggest that China’s central bank has already increased its gold holdings by 5 tonnes in March, posting its 5th consecutive monthly purchase. This brings China’s total gold reserves to a record 2,292 tonnes. Its gold holdings now reflect 6.5% of its total official reserve assets.