The price of gold climbed above $5,000 per ounce on Monday, hitting a fresh all-time high. Growing worries over the escalating U.S.-China trade dispute and the potential for a federal government shutdown have spurred a move into precious metals. At the same time, Bitcoin (BTC) dropped to around $86,000, a five-week low, widening the performance gap between the two assets often viewed as alternative stores of value.
What happened: Gold clears $5,000
The precious metal extended its advance to $5,080 per ounce, bringing its year-to-date gain to 17%.
Traders shifted into gold after President Donald Trump threatened 100% tariffs in response to Canada’s trade deal with China. This, along with the risk of a federal government shutdown, amplified market unease.
“Fears of a government shutdown have added momentum to the precious metals rally,” the Kobeissi Letter noted on Monday.
#Silver also broke above $107 per ounce, setting a new record, and is up 48% so far in 2026. Gold crossed the $5,000 threshold before Ether (ETH), settling a Polymarket bet opened in early October in gold’s favor.
ETH declined below $2,800 on Sunday and now trades more than 40% below its August peak of $4,946.
Bitcoin fell 1.6% over 24 hours, slipping under $86,000 on **Coinbase** late Sunday and erasing its year-to-date gains. The cryptocurrency currently sits 30% below its October high of $126,000.
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Why it matters: Shift toward safety
The contrasting trajectories of gold and Bitcoin reflect a broader shift in how investors are responding to geopolitical risks, explained Jeff Mei, COO of the BTSE exchange.
Mei said, “Normally, rising uncertainty drives capital into traditional safe havens like U.S. Treasuries and gold. This time, however, with the threat of a government shutdown and Trump’s recent tariff warnings over Greenland, global investors are favoring gold over Treasuries.”
He added that markets are also adjusting to expectations that the Federal Reserve will maintain interest rates at current levels. Stronger economic growth and labor market data have reduced the likelihood of near-term rate cuts.
