Gold vs. Bitcoin: Tariff Uncertainty Lifts XAUUSD as BTC Tests Critical Support

The global financial markets are in state of uncertainty due to Trump’s tariff policies. Investors are anticipating an increase in trade conflict and policy shocks. This environment causes money to flee to safe assets. Gold (XAU) and silver (XAG) prices are rising while there is pressure on risk assets. The change in sentiment indicates clear risk off mood in global markets.

Bitcoin (BTC) has fallen to $60,000 amid reduced risk-taking by traders. Fears that renewed tariffs may slow world growth and liquidity drives this drop. Investors dump volatile assets during times of policy uncertainty. Meanwhile headlines of potential tariffs also increase panic selling. This behaviour destroys the short term demand for Bitcoin and keeps prices under pressure.

Gold Surges on Safe-Haven Demand and ETF Inflows

Gold is moving in opposite direction because investors are seeking protection against uncertainty. Safe-haven demand rises amid rising trade tensions and geopolitical risks. Strong inflows to ETFs confirm that institutional money is rotating into gold. Rising demand for physical gold bars is also indication of investors looking for stability over risk.

The decoupling of gold and bitcoin is now more visible. Gold is behaving like a traditional store of value while bitcoin is behaving more like risk asset. If tariff tensions persist, they support gold and push to higher levels. On the other hand, Bitcoin could remain volatile until there is policy clarity and returns in risk appetite.

Bitcoin Key Resistance and Major Support Zone

The Bitcoin price hit the resistance of $120,000 in October 2025. After hitting this resistance, the Bitcoin price dropped towards the major support area. The neckline of the cup and handle pattern drawn from the 2021 highs identifies the resistance of $120,000.

The failure to break $120,000 in Bitcoin pushed prices to $50,000 to $60,000, which is considered a major support zone.

This support zone is defined by 200-day SMA which sits around $58,000. The descending trend line of wedge pattern also hits this zone which makes this area a critical support. A rebound from this zone is likely, but a break below $50,000 will take Bitcoin towards $35,000.

It is important to note that the RSI is also approaching oversold levels not seen since 2018. When bitcoin prices hit this oversold level, the price generally rebounds.

Volatility Signals Build as Bitcoin Tests Critical Base

The ascending broadening wedge pattern drawn from the 2022 lows provides strong support in Bitcoin. The emergence of the rounding top and bear flag patterns has resulted strong drop in Bitcoin.

The emergence of the ascending broadening wedge pattern indicates strong market volatility. This volatility may create strong price ranges if Bitcoin can confirm the bottom at any time.

Gold Structure Remains Bullish

Despite the strong drop in Bitcoin prices, the gold price has produced a strong rebound from support of ascending broadening wedge pattern. The gold price has formed a bottom at $4,400 and is building constructive patterns that indicate further upside.

Bitcoin-to-Gold Ratio Signals Further Divergence Risk

The correlation between Bitcoin and gold is observed using Bitcoin to gold ratio chart. The chart shows that the ratio is attempting to break below 13, which is considered as a strong support. A confirmed break below 13 in the ratio will initiate a drop towards 9.

This drop in the ratio will indicate further downside in Bitcoin prices. However, if the ratio breaks down and Bitcoin price consolidates between $50,000 and $60,000, then the gold will continue to surge with stronger momentum. This will drop the ratio towards the 9 level.

The ratio is now approaching oversold levels which indicates that Bitcoin is approaching bottom and may initiate a rebound.

Bottom Line – Tariff Risks Drive Safe-Haven Rotation and Crypto Volatility

Markets are responding to tariff uncertainty with definite move to safety. Investors are shifting their money into gold and silver and away from volatile investments such as Bitcoin. Bitcoin is sitting in the support zone of $50,000-$60,000 and technical signals may trigger rebound if this level holds.

However, ongoing tension in the policy can keep risk appetite low and limit upside in the short term. Gold remains structurally strong with continuous increases in safe-haven demand and institutional inflows. If trade risks are sustained, gold will likely test new highs. However Bitcoin will remain volatile until confidence and liquidity conditions are restored.

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