Gold Breaks $4,000 as Bitcoin Pulls Back Amid Strong Dollar
Bitcoin and gold moved in opposite directions over the past 24 hours as the U.S. dollar strengthened.
BTC slipped 2.4% to $121,340 after failing to sustain gains above $126,000 earlier this week, according to CoinDesk data. The broader Coindesk 20 Index fell over 4% to 4,186 points, reflecting weakness across major cryptocurrencies.
The U.S. Dollar Index (DXY) reached 98.90, its highest level since August 5. Historically, a rising dollar exerts pressure on USD-denominated assets like Bitcoin, with technical charts suggesting BTC could test support around $118,000 if the decline continues.
Earlier this week, Bitcoin hit record highs, fueled by U.S.-listed spot ETFs that drew more than $3 billion in inflows for the week ending Friday.
Gold Surges on ETF Inflows and Safe-Haven Demand
In contrast, gold climbed past $4,000 per ounce, supported by robust ETF inflows. ING analysts noted that gold-backed ETF holdings reached their highest levels since September 2022, with room for further growth potentially driving prices even higher.
The yellow metal has doubled in value over the past two years as central banks diversify reserves away from the U.S. dollar. Geopolitical tensions—including trade disputes and conflicts in the Middle East and Ukraine—have further amplified demand.
Tokenized gold products, such as PAXG, also surpassed $4,000, pushing the combined market value of all tokenized gold above $3 billion.
