The past few weeks have been lucky for those who own shares of gold and bitcoin. The two commodities have reached record highs, and that trend is set to continue.
Gold broke the $4.000 barrier per troy ounce this Sunday — a troy ounce is a unit of measurement for precious metals and is equal to 31,1 grams.
Meanwhile, on Sunday, October 5, the world's oldest and most famous cryptocurrency, bitcoin, set a record when it broke the $125.000 mark for the first time, before falling slightly.
For both commodities, 2025 has been an exceptional year so far. Gold is on its biggest rise since the 1970s, with its price up more than 50 percent since January 1. Bitcoin has had its share of downs during the turbulent year, but its value has risen by about a third since the start of the year.
Why is this happening?
Gold has long been considered a so-called "safe haven" that investors turn to during times of uncertainty. Its value has been on a steady rise since late 2018, and has since risen by more than 300 percent.
Uncertainty is one of the key factors in the current growth — US President Donald Trump's reciprocal tariffs imposed in April have raised concerns about the global economy, the sustainability of US national debt levels and the future of the US dollar as the world's reserve currency.
There are also constant geopolitical tensions — from the war in Ukraine to the conflict in Gaza.
Another recent factor was the temporary shutdown of the US government. Investors are increasingly seeing gold as an alternative to the dollar, a currency whose value has fallen significantly this year.
Gold also benefited from a weakening yen, another safe-haven asset. Japanese stocks rose on Monday after Sanae Takaichi was confirmed as the leader of the ruling Liberal Democratic Party, putting her on track to become Japan's first female prime minister. However, the yen continued to fall.
"The weakness of the yen after the Japanese election left investors without another safe haven, and gold was able to take advantage of that," explains Tim Waterer, chief market analyst at KCM Trade.
The situation in the US further increases the appeal of gold.
"The prolonged US government shutdown means that a cloud of uncertainty continues to hang over the US economy and the potential impact on GDP," Waterer adds.
However, experts say that gold's current rise is not solely due to doubts about the US or global economy. Several analysts point to growing demand for gold exchange-traded funds (ETFs) as more investors from different sectors seek to invest in the precious metal.
"The fact that demand for ETFs is strong again means that there are now two sources of aggressive demand for gold – central banks and ETF investors," Deutsche Bank analysts wrote in a note to clients.
Gold has long been bought by central banks around the world, but a new wave of ETF demand has further fueled growth. The latest data from the US Commodity Futures Trading Commission (CFTC) shows that hedge funds now hold a record $73 billion in gold.
And what about bitcoin?
Bitcoin's record growth has been largely fueled by the re-election of Donald Trump as US president, whose outspoken support for cryptocurrencies is boosting confidence and demand in the sector.
However, there is evidence that more institutional investors are also getting into bitcoin, which is reminiscent of the trend seen with gold. The cryptocurrency is becoming attractive as an alternative to traditional investments, such as the dollar. Expected interest rate cuts are also leading investors to take on more risk.
Bitcoin is apparently also strengthening due to uncertainty in the US economy, as the current government shutdown is increasing demand.
"This time the blockchain really matters," wrote Jeffrey Kendrick, head of digital asset research at Standard Chartered Bank, in a note to investors.
"This year, bitcoin has moved in line with risks related to the US government, best seen in its relationship with long-term Treasury yields," he added, referring to a measure that shows how much additional yield investors are looking for by holding long-term bonds - reflecting their confidence in long-term economic stability.
Another possible reason for Bitcoin's current strength lies in its seasonal pattern. October has historically been one of the strongest months for the cryptocurrency – its price has only fallen twice in October since 2013.
Can growth continue?
Many observers expect that the values of gold and bitcoin will continue to rise and that new records will soon be set.
"I expect bitcoin to continue to rise as long as the lockdown lasts and to reach $135.000 soon," Kendrick predicts. Additional optimism is also fueled by the fact that the Trump administration is likely to continue its pro-cryptocurrency policies.
When it comes to gold, few expect its value to decline anytime soon.
"Growth could continue into 2026, with support from central banks; institutional demand for gold as a portfolio hedge will remain strong," HSBC said in a note to investors.
The London bank says it expects central banks to continue buying gold in large quantities as a hedge against geopolitical risks.
This coincides with the position of the World Gold Council, which stated in its latest quarterly report at the end of July that 95 percent of foreign exchange reserve managers believe that global central bank gold reserves will increase over the next 12 months.
This, coupled with growing demand for ETFs from hedge funds and other institutional investors, indicates that prices for these commodities will most likely continue to rise.
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