As Gold Pauses, Bitcoin Pulses Higher on Renewed Risk Sentiment Before Fed Meeting

Bitcoin Reawakens as Gold Rally Stalls Ahead of Fed Policy Meeting

Gold’s parabolic rise paused this week as investors locked in profits before the Federal Reserve’s upcoming rate decision, easing safe-haven demand and reviving risk appetite across markets — including Bitcoin.

Spot gold retreated more than 6% from Monday’s record high above $4,380 per ounce, settling near $4,120 by the weekend. The pullback followed heavy ETF outflows and signs of progress in U.S.–China trade negotiations, which tempered the geopolitical uncertainty that had fueled the metal’s surge.

After two days of talks in Malaysia, officials from both countries said they had reached a “preliminary consensus” on key trade issues. U.S. Treasury Secretary Scott Bessent added that President Trump’s proposed 100% tariffs on Chinese imports were “effectively off the table,” easing market fears of renewed trade escalation.

The softer macro tone and expectations of another 25-basis-point rate cut this week removed some of gold’s luster. Silver and platinum also slid sharply, underscoring a broad cooling in precious metals before the Fed’s decision.

Bitcoin, meanwhile, is finding fresh momentum. The largest cryptocurrency rose more than 5% this week to reclaim the $113,500 level, breaking out from a narrow month-long range.

CoinDesk data shows the BTC/gold ratio — which tracks Bitcoin’s relative performance to the yellow metal — recently hit its most oversold level in nearly three years, with its 14-day RSI dropping to 22.20 last week. Historically, such extremes have preceded local bottoms for Bitcoin, followed by periods of relative outperformance as traders shift back toward higher-risk assets.

With gold cooling, trade risks easing, and liquidity sentiment improving ahead of the Fed, Bitcoin appears to be regaining its pulse after weeks of dormancy.