I Expected Cryptocurrencies to Thrive, but Gold Takes the Lead in the Trump Era

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Gold Outshines Bitcoin and Other Assets Amid Trump's Economic Policies


Since Donald Trump’s inauguration as President of the United States in January 2025, gold has emerged as the most profitable asset, surpassing even Bitcoin in value growth. On February 13, 2025, the price of gold reached an all-time high of $2,942.70 per troy ounce, a remarkable 7% increase from its value on January 20, 2025, when Trump took office. This surge in gold prices contrasts sharply with the relatively modest performance of other financial assets, such as the S&P 500 index, which has seen only a 2% increase in the same timeframe.

Meanwhile, the U.S. dollar index has dropped from 109 to 106, reflecting a decline in the strength of the dollar against other currencies. Additionally, the yield on 10-year U.S. Treasury bonds has decreased from 4.62% to 4.48%, and Bitcoin has experienced a significant downturn, falling from over $100,000 per coin to around $96,907. These shifts in the market underscore the growing preference for gold as a safe haven amid economic uncertainties.

The rise in gold prices can be attributed to increased investor demand for secure assets as concerns about the global economy intensify, especially with Trump’s controversial trade policies. The administration’s decision to impose additional tariffs on Chinese imports and the possibility of further trade conflicts have contributed to a sense of economic instability. In this environment, gold has become the go-to asset for investors seeking to protect their wealth from the volatility of the stock market, currency fluctuations, and other high-risk assets like Bitcoin.

James Steel, a leading precious metals analyst at HSBC, explained that the imposition of more tariffs is likely to disrupt international trade even further, creating conditions that are favorable for gold. The more barriers that are put in place for trade, the more valuable gold becomes as a store of value.

Despite initial expectations that cryptocurrencies would thrive during Trump’s presidency, particularly Bitcoin, the precious metal has proved to be the real leader in this economic landscape. The ongoing trade tensions and inflation concerns have propelled gold into the spotlight, making it the preferred investment during uncertain times.

Gold’s impressive performance is a reflection of broader market trends, where investors are shifting away from riskier assets in favor of more stable options like gold. While Bitcoin and other cryptocurrencies may still hold long-term potential, gold’s historical status as a safe-haven asset has been reaffirmed in the wake of Trump’s economic decisions.

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