Gold Price Hits New All-Time High Above $3,300 Amid Tariff Turmoil: Bitcoin Next?

Gold prices have surpassed $3,300 per ounce, setting a historic high as global markets face heightened volatility.

This surge reflects investor anxiety over economic uncertainty and highlights the significant impact of controversial tariff policies under President Trump. Consequently, experts have issued conflicting forecasts on how this may influence Bitcoin.

What’s Driving Gold to Keep Breaking Records?

At the time of writing, gold has surged past $3,000, reaching a peak of $3,317. That marks a 25% increase since the beginning of the year.

Gold Price Performance. Source: Goldprice

According to a report in The New York Times, the global trade war is the primary force behind gold’s continued rise. Retaliatory tariffs among major economies are clouding the global economic outlook.

The US imposed new tariffs, quickly triggering countermeasures from China, the European Union, and Canada. In response, the White House escalated the situation further.

“While general uncertainty and deteriorating economic vibes are improving interest in gold, most of gold’s price action is around the uncertainty related to tariffs,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said.

In addition, there are growing concerns that tariffs could directly target imported gold. This fear has led to gold stockpiling within the United States.

Business Standard reported that major banks like JPMorgan Chase and HSBC have been moving large quantities of gold from London to New York. JPMorgan alone plans to transport $4 billion worth of gold this month.

Besides the tariff war, macro analyst Zerohedge pointed to another factor—the Senate Budget Resolution for FY2025. This resolution allows the US to increase its budget deficit by up to $5.8 trillion over the next ten years. Zerohedge suggested that Gold is responding to this news.

The price spike reflects fears of currency devaluation due to ballooning deficits.

Goldman Sachs has also raised its year-end gold forecast to $3,700. The bank cited stronger-than-expected central bank demand and rising recession risks.

What Are Analysts Saying About Bitcoin as Gold Hits a New Peak?

While gold shines, Bitcoin, often called “digital gold,” has drawn mixed opinions.

Anthony Papillano, CEO of Professional Capital Management, told CNBC on April 15 that Bitcoin has dropped around 10% since the start of the year, while gold has gained 20%. However, both assets have risen approximately 35% over the past year.

He also outlined reasons why Bitcoin might soon rally like gold. These include the US government’s strategic Bitcoin reserve plans and the younger generation’s growing view of Bitcoin as part of a long-term investment strategy.

“History tells us Bitcoin’s returns will skyrocket past Gold in the coming months,” Papillano predicted.

Supporting this view, several analysts noted that Bitcoin often follows gold’s upward momentum with a lag of about 100 days, especially during increased global liquidity. Additionally, companies purchased more than 95,400 BTC in the first quarter of 2025, showing strong institutional demand.

However, not everyone agrees. Economist Peter Schiff, a long-time Bitcoin critic, offered a contrasting view. He claimed the best trade right now is to sell all Bitcoin and other cryptocurrencies and invest entirely in gold and silver mining stocks.