Gold Surges After Bitcoin Decline: Profit Rotation Into Precious Metals Analysis

Gold, widely regarded as a traditional safe-haven asset, climbed 1% on Monday to achieve another historic peak, bringing its 2025 gains to an impressive 43%. The precious metal, currently trading at $3,721, began its upward move approximately one hour after Bitcoin (BTC) experienced a 3% decline, dropping to $112,000 and reducing its year-to-date gains to 17%. This timing indicates potential profit-taking from Bitcoin being redirected into gold investments. While both assets occasionally move in sync with brief delays, the current divergence appears more pronounced. Gold isn't the only precious metal benefiting from these flows. Silver also advanced 1.5% on Monday, approaching $44 per ounce - its third-highest level since 1975 - with year-to-date gains exceeding 50%. Since the Federal Reserve's 25 basis point rate cut on September 17th, both gold and the S&P 500 have gained approximately 1%. Meanwhile, U.S. Treasury yields have increased, with the 10-year note reaching 4.125% (+2.5%) and the 30-year bond at 4.7% (+2%). The U.S. dollar has strengthened, with the DXY index rising 1% to 97.5, typically creating pressure on risk assets. Bitcoin has declined over 3.5% following the Fed's decision.