Investors Flock to Bitcoin, Gold as Geopolitical Tensions Mount

Gold held firm above $3,350 per ounce and Bitcoin hovered near \$97,000 as investors sought safety in traditional and digital havens ahead of the U.S. Federal Reserve’s policy decision and amid intensifying global geopolitical risks.

The Federal Open Market Committee is expected to keep interest rates steady between 4.25 per cent and 4.50 per cent at the close of its two-day meeting, with markets closely watching Chair Jerome Powell’s remarks for direction on inflation, weakening consumer demand, and broader price pressures.

Strong demand for gold, especially among Chinese investors, and reduced central bank exposure to the U.S. dollar have supported the metal’s continued rise.

At the same time, Bitcoin has held its ground near record highs, trading at $96,730—up 3 per cent in the last 24 hours—buoyed by speculative ETF inflows and expectations of potential monetary easing later this year.

Rising tensions in the Middle East have further accelerated the flight to safe-haven assets. A missile strike on Israel’s Ben Gurion Airport by Houthi forces injured eight people and disrupted air traffic. Israel responded with airstrikes on multiple targets in Sanaa, resulting in fatalities and damage to civilian infrastructure. The Houthis warned of retaliatory measures, raising the spectre of broader regional escalation.

Meanwhile, U.S. foreign policy under President Donald Trump has reignited trade concerns, following his announcement of new tariffs on imported pharmaceuticals and foreign-produced entertainment content. The move has drawn criticism and stoked fears of retaliatory actions that could disrupt global commerce.

Bitcoin briefly touched \$109,000 in January shortly before Trump’s inauguration, and its current strength has renewed optimism among traders. Analysts at Bitfinex noted that sustained trading above \$95,000 would affirm bullish sentiment, though a break below that level could trigger a reversal. Whether the cryptocurrency can sustain a breakout or faces renewed resistance remains uncertain in the short term.

Investor optimism was mildly boosted by signs of a thaw in U.S.-China trade relations, with Treasury Secretary Scott Bessent announcing upcoming talks in Switzerland. Chinese officials acknowledged efforts toward dialogue, hinting at possible adjustments to existing tariffs.

As markets await the Federal Reserve’s policy statement and Powell’s guidance, the broader investment landscape remains volatile. Inflation persistence, geopolitical shocks, and shifts in global trade policy continue to shape the demand for risk and refuge alike.