Gold Breaks Records Amid Rising Geopolitical Tension Bitcoin Diverges

Gold at Historic Highs, Geopolitical Tensions and Bitcoin’s Different Path

In the recent weeks of high volatility, global markets witnessed gold surging to unprecedented levels above $4,000 per ounce, intensifying military tensions in the Caribbean Sea, and a notable divergence between Bitcoin and gold. This analytical summary examines the driving factors behind these three key trends.

1. Gold: Conquering the $4,000 Peak and the Expected Correction

The precious metals market experienced a historic event. The price of gold (XAU/USD) broke through major resistance levels and rose to astonishing levels above $4,350 (and in some sources up to $4,380). This powerful rally was predominantly supported by:

• Geopolitical risk: Heightened conflicts and uncertainty around the world significantly increased demand for safe-haven assets.
• Central bank purchases: Reports indicate central banks globally, particularly in emerging markets, continued strategic gold accumulation as part of their currency reserves.

However, after reaching this historic peak, the market entered a corrective phase. Profit-taking by short-term traders and the release of some macroeconomic data that slightly alleviated inflationary pressure led to the pullback. Such a correction, after such a rapid ascent, is natural and considered necessary for the long-term health of the trend.

2. Hot Spot: U.S. Venezuela Engagement in the Caribbean

What initially was labelled as “tension” has in recent weeks escalated into limited military engagements. Multiple reports confirm U.S. naval deployments in the Caribbean Sea, purportedly targeting drug trafficking, and further reports of direct maritime skirmishes involving vessels allegedly tied to Venezuelan networks. Although official sources avoid the term “war,” this level of direct military involvement imposes significant systemic risk on markets, making it one of the primary reasons for the investor rush into safe-haven assets like gold.

3. Bitcoin: A Separate Journey from Gold

While gold was setting new records, Bitcoin (BTC) followed a different path. After an initial surge, Bitcoin experienced a sharp decline and was unable to sustain the same ascent as gold, instead remaining range bound (for example between $108,000 and $112,000).

This divergence highlights a key analytical point:

• Different buyer profiles: While gold’s main drivers have been central banks and institutional players, Bitcoin’s flow remains dominated by ETF inflows and institutional funds.
• Internal selling pressure: It appears that alongside institutional inflows via ETFs, some older and short-term Bitcoin holders were taking profits at these levels—this counter pressure prevented Bitcoin from mirroring gold’s rally.

4. The Snap Back Mechanism and Iranian Traders

In addition to global military risks, Iranian traders always keep an eye on politically specific risk factors— notably the activation of a “Snap-Back” mechanism that could trigger renewed international sanctions and increase financial and trade restrictions. In such a challenging environment, access to a reliable broker—one capable of maintaining stability under uncertainty—becomes doubly important.

In that context, broker GreenUp24 proudly states that despite all these uncertainties and regional and global geopolitical risks, its commitment to Iranian users remains unwavering. We have reinforced our technical infrastructure, financial systems, and support team to ensure our services are delivered in the best possible way, without interruption and at the highest quality.

Stability and reliable support in difficult conditions are our top priorities at GreenUp24.

Conclusion

These developments show that although Bitcoin is often called “digital gold,” in short term cycles and under the influence of distinct drivers (like central bank gold purchases versus ETF flows), it does not have a direct correlation with gold. The market is still digesting geopolitical risks, and any escalation in the Caribbean could trigger a new wave of volatility in both assets.