Gold Hits Record Above $5K as Bitcoin Slides, Correlation Breaks
Gold climbed above $5,000 to a record as geopolitical and trade risks intensified, while Bitcoin retreated toward $86,000, widening the divergence between the two assets.
Gold reached an all-time high of $5,080 on Monday after rising 17% so far this year, according to Gold Price, as investors sought safety amid concerns about a potential U.S. government shutdown and uncertainty surrounding escalated tariff threats from the Trump administration.
“The prospect of a government shutdown has intensified the bid for precious metals,” the Kobeissi Letter said Monday.
Tensions around trade escalated over the weekend after U.S. President Donald Trump threatened Canada with a 100% tariff tied to a China trade agreement.
Gold surpassed Ether (ETH) in reaching the $5,000 threshold, concluding a Polymarket wager initiated in early October on which asset would get there first. ETH fell below $2,800 on Sunday and is now more than 40% beneath its August all-time high of $4,946.
Silver also broke above $107 per ounce for the first time on record and is up 48% year to date in 2026. Source: Google Finance
Bitcoin–gold correlation weakens
Bitcoin (BTC) fell 1.6% on the day, erasing its year-to-date gains, and touched a five-week low just under $86,000 on Coinbase late Sunday, according to TradingView.
BTC is now 30% below its October peak of $126,000, extending the divergence from gold.
Investors favor gold over Treasuries
Gold is rallying and cryptocurrencies are softer due to the growing probability that the U.S. government could shut down at the end of the month, said Jeff Mei, chief operations officer at the BTSE exchange.
“Additionally, markets are factoring in the likelihood that the Fed will keep interest rates unchanged, given stronger growth and employment data,” Mei said.
“Typically, during periods of uncertainty, capital moves to safe havens such as U.S. Treasuries and gold. However, with the potential government shutdown and Trump’s recent tariff threats over Greenland, global investors appear less inclined toward Treasuries and more toward gold,” he added.
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