Bitcoin tops $80,000 as dollar weakness lifts crypto alongside gold
The price of gold climbed to $4,651 per ounce during Asian trading on Tuesday, reaching its highest level in more than three months and putting the metal on track for its biggest monthly gain since September 1999.
Gold has risen about 15% during August, fueled by the ongoing US-Iran conflict in the Middle East and by investor anxiety over President Donald Trump’s tax and spending plans. The rally extends a pattern of safe-haven demand that began in 2025, after Trump first announced tariffs on imported goods.
The latest gains came as investors awaited US inflation data and a closely watched speech from the new Federal Reserve chair, Kevin Warsh, amid anxiety in government bond markets over inflation and Trump’s fiscal agenda.
Tony Sycamore, a market analyst at the broker IG, said the price’s path was likely to continue upward.
“Looking ahead, we expect dips in gold to be well-supported from buyers looking for gold to make its way towards the next upside resistance at $4,900/$5,000,” Sycamore said.
The price of gold topped $4,000 an ounce for the first time in October 2025, passed $5,000 in January 2026 and reached a record high at the end of that month, driven by shifts in US policy and political uncertainty in France and Japan. The price then fell back to $3,942 in late June, despite the ongoing Middle East conflict.
Analysts said the US-Iran conflict has also pushed oil prices higher, along with expectations of higher inflation and interest rate rises — factors that can subdue gold demand, and which appeared to outweigh the metal’s appeal as a store of wealth in June.
Ipek Ozkardeskaya, a senior analyst at the Swiss banking group Swissquote, said investors were turning to gold to hedge against unclear US fiscal plans, against inflation amid questions over the Federal Reserve’s willingness or ability to fight inflation independently, and against concerns about the AI boom.
The price of bitcoin climbed above $80,000 on Tuesday, taking the cryptocurrency to a three-month high not seen since mid-May, which analysts attributed to a weakening US dollar and the same factors driving gold higher.
Trump has announced fresh tariffs on cars and crucial raw materials from Canada, marking the latest deterioration in relations between the two neighbours. The US has also threatened to impose severe sanctions against any country or entity maintaining economic ties with Iran.