①Gold has performed exceptionally well this year, standing out among a range of major assets, including Bitcoin; ②Other precious metals—silver, platinum, and palladium—have also surged significantly, all outperforming Bitcoin.
Gold has performed exceptionally well this year, standing out among a range of major assets, including Bitcoin. However, gold is not the only star performer; other precious metals—silver, platinum, and palladium—have also surged significantly, with all of them outperforming Bitcoin.
According to TradingView data, $XAU/USD (XAUUSD.CFD)$ prices have soared 44% this year, reaching a record high of $3,784 per ounce; silver has risen 53% to $44.32 per ounce; platinum has climbed 60% to $1,452 per ounce, while palladium has also increased by 33% to $1,207 per ounce.
Meanwhile, Bitcoin, often referred to as ‘digital gold,’ has failed to keep pace with precious metals, rising only slightly over 20% this year to $113,000.
Based on year-to-date performance, the conclusion is clear: amid deteriorating fiscal prospects in advanced economies, increasing threats to the Federal Reserve’s independence, and U.S. President Trump’s resumption of trade wars, precious metals led by gold remain investors’ preferred safe-haven and inflation-hedging instruments.
Additionally, central banks’ diversification strategies involving increased gold purchases have provided strong tailwinds for gold and its precious metal counterparts. A study by the European Central Bank shows that the total amount of global central bank gold reserves is approximately 36,000 tons.
The gold-buying spree by central banks was initiated following the outbreak of the COVID-19 pandemic and further accelerated after the Russia-Ukraine conflict erupted in 2022, both of which exacerbated inflationary pressures in the global economy.
Over the past three years, global central banks have added more than 1,000 tons of gold annually to their reserves, setting records at a pace more than twice the average of the previous decade.
In contrast, Bitcoin has yet to enter central banks’ balance sheets, limiting its role as a reserve asset.
Moreover, reports indicate that as Bitcoin prices surpassed $110,000, continuous sell-offs or distributions from some early wallets have also suppressed its gains. These sell-offs are said to have offset inflows from ETFs (exchange-traded funds).
Notably, Deutsche Bank released a report on Monday stating that while gold and cryptocurrencies have shown divergent trends in the short term, both are expected to develop side by side in the coming years.
Deutsche Bank noted that by 2030, both gold and Bitcoin could appear on central bank balance sheets.
Editor/KOKO
