Gold and Silver Rally as Bitcoin Stumbles Amid Geopolitical Tensions

Precious metals surge to record highs as central banks accelerate gold acquisitions, while bitcoin faces downward pressure. The divergence highlights a flight to traditional safe havens amid escalating global tensions.

Central banks—particularly China and Russia—have added over 1,000 metric tons of gold to reserves this year, signaling a strategic shift away from dollar dependence. This institutional buying creates structural demand unmatched by retail speculation.

Geopolitical fractures amplify the move: U.S. sanctions, the Russia-Ukraine war, Middle East conflicts, and transatlantic trade disputes over Greenland fuel risk aversion. 'When elephants fight, the GRASS suffers,' observes one Zurich-based trader, referencing capital flows into perceived stability.

Meanwhile, cryptocurrencies languish as risk appetite wanes. Bitcoin’s correlation with tech stocks resurfaces, leaving it vulnerable to broader market sentiment. The contrast underscores an old market truth—during systemic stress, investors reach for assets with centuries of precedent rather than algorithmic promises.