Gold reached a record high above $5,000 on Monday as escalating trade tensions and fears of a potential U.S. government shutdown drove investors toward the precious metal, while Bitcoin (BTC) fell to a five-week low near $86,000, deepening the divergence between two assets often compared as stores of value.
What Happened: Gold Tops $5K
The precious metal climbed to $5,080 per ounce, marking a 17% gain since the start of the year.
Traders moved into gold after President Donald Trump threatened Canada with a 100% tariff over a China trade deal. The prospect of a government shutdown added to market anxiety.
"A likely government shutdown just added fuel to the fire for precious metals," the Kobeissi Letter said Monday.
Silver also hit a record, topping $107 per ounce for the first time and gaining 48% in 2026. Gold reached the $5,000 milestone before Ether (ETH), settling a Polymarket bet from early October on which asset would get there first.
ETH prices fell below $2,800 on Sunday and now sit more than 40% below their August all-time high of $4,946.
Bitcoin dropped 1.6% on the day, erasing its gains for the year as it slid below $86,000 on Coinbase late Sunday. The cryptocurrency is now 30% below its October peak of $126,000.
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Why It Matters: Flight to Safety
The split between gold and Bitcoin reflects a broader shift in how investors are responding to geopolitical uncertainty, according to Jeff Mei, chief operations officer at the BTSE exchange.
"Normally, in uncertain times, capital moves towards safe-haven assets such as US Treasuries and gold, but because of the potential government shutdown and Trump's recent tariff threats over Greenland, global investors are less inclined towards Treasuries and more towards gold," Mei said.
Markets are also pricing in the expectation that the Federal Reserve will hold interest rates steady, he said. Stronger economic growth and employment numbers have reduced the likelihood of rate cuts.
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