Key Highlights
- Gold surged to $3,728 per ounce as Bitcoin collapsed sharply
- Fed rate cuts fuel investor demand for safe-haven assets
- Silver, platinum, and palladium also post strong rallies
Gold Surges to Record High Amid Crypto Market Collapse
On September 22, 2025, the price of gold hit a new all-time high of $3,728 per ounce, according to TradingView. The rally came as the crypto market collapsed, suggesting a significant reallocation of capital from digital assets to traditional safe havens.
At the time of writing, gold was holding above $3,720. Charts show that the rally began around 8:00 a.m. CET, coinciding with a sharp correction in Bitcoin and other cryptocurrencies.
Analysts point to the Federal Reserve’s interest rate cuts as a key factor. Tim Waterer, chief market analyst at KCM Trade, explained to Reuters:
“Gold is gaining momentum again today as traders focus on the potential for higher prices between now and the end of the year, helped by the expected further Fed rate cuts.”
He added that if macroeconomic conditions remain favorable, the rally could intensify, supporting the Fed’s dovish stance.
Precious Metals Join the Rally
As discussed in our earlier analysis on interest rates and crypto, falling rates often push liquidity from Treasury bonds into other markets. This shift may explain why gold surged while Bitcoin dropped, reflecting capital rotation toward safer assets.
Other precious metals also benefited. Spot silver rose 1.3% to $43.6 per ounce, nearing a 14-year high. Platinum gained 1.2% to $1,420.4, while palladium advanced 1.2% to $1,163.2.
Henry Allen of Deutsche Bank, quoted by Fortune, noted that the impact of rate cuts is already priced in, while the latest surge in hedge assets is driven by concerns over the U.S. economy.
While Bitcoin is often called “digital gold,” some experts argue that the cryptocurrency is increasingly tied to macroeconomic factors and may be losing its reputation as a safe-haven asset. The sharp contrast between Bitcoin’s decline and gold’s rally underlines the changing dynamics of global capital flows.
