Gold’s Rally Cools, Bitcoin Regains Momentum as Traders Turn Toward Risk
Gold’s record-setting advance paused this week as investors booked profits ahead of the Federal Reserve’s October policy decision, easing safe-haven demand and drawing attention back to risk assets such as Bitcoin.
Spot gold slipped more than 6% from its all-time high above $4,380 per ounce on Monday, closing the week near $4,120. The decline was driven by ETF outflows, profit-taking, and improving sentiment around U.S.–China trade relations.
Officials from both countries said they reached a “preliminary consensus” on several key issues following two days of talks in Malaysia. U.S. Treasury Secretary Scott Bessent added that President Trump’s threat of 100% tariffs on Chinese goods is “effectively off the table,” a development that eased fears of a renewed trade escalation.
The combination of softer macro headlines and expectations for a 25-basis-point rate cut at this week’s Fed meeting removed some of the momentum from gold’s eight-week rally. Silver and platinum followed suit, signaling a broad recalibration in the precious metals complex.
Bitcoin, however, appears to be benefiting from the shift. The world’s largest cryptocurrency has gained more than 5% over the past week, climbing back above $113,500 and breaking free from its narrow month-long range.
According to CoinDesk analyst Omkar Godbole, the BTC/gold ratio — which tracks Bitcoin’s performance relative to gold — recently flashed its most oversold reading in nearly three years. The ratio’s 14-day Relative Strength Index dropped to 22.20 last week, its lowest since November 2022.
Historically, such deep oversold conditions have marked local turning points for Bitcoin, often preceding periods of outperformance as investors rotate out of safe havens and back into higher-risk assets.
With gold losing momentum, trade tensions easing, and liquidity sentiment improving ahead of the Fed’s decision, Bitcoin may once again find itself positioned as the market’s barometer for risk.
