Gold Pulls Back as Bitcoin Regains Momentum Ahead of Fed Decision
Gold’s record-setting rally cooled this week, ending an eight-week winning streak as investors took profits and shifted focus back to risk assets like Bitcoin.
Spot gold fell more than 6% from its all-time high above $4,380 an ounce on Monday, settling near $4,120 over the weekend. The drop coincided with ETF outflows and signs of easing U.S.–China trade tensions.
Officials from both nations said they reached a “preliminary consensus” on key trade issues during talks in Malaysia, with U.S. Treasury Secretary Scott Bessent confirming that President Trump’s proposed 100% tariffs on Chinese goods are “effectively off the table.”
The improved geopolitical tone and expectations of another 25-basis-point Fed rate cut this week helped cool safe-haven demand. Silver and platinum also fell sharply, signaling a broader metals pullback before Wednesday’s decision.
Bitcoin, meanwhile, has regained footing. The leading cryptocurrency climbed more than 5% in the past week to reclaim $113,500, snapping out of a month-long consolidation.
CoinDesk data shows Bitcoin’s relative strength versus gold has rebounded after flashing its most oversold reading in nearly three years. The BTC/gold ratio’s 14-day RSI dropped to 22.20 last week — a level that historically marks turning points in Bitcoin’s performance.
Analysts note that such deep oversold signals in the BTC/gold ratio often precede renewed crypto outperformance as risk appetite returns and macro fear eases.
With the Fed’s decision looming and gold cooling from extremes, Bitcoin appears to be regaining its pulse as global liquidity sentiment improves.
