Gold Futures Break $4,200 as Crypto Outflows Hit Record Levels
Gold reached a record high, briefly topping $4,200 per ounce before closing at $4,197.6, marking nearly a 60% surge in 2025. This comes as over $21 billion exited Binance and other major crypto exchanges following a sharp crypto market decline, reflecting a shift in risk appetite. Analysts describe these moves as a “flight-to-safety,” with capital moving from high-risk assets like crypto to safe havens such as gold ahead of the Federal Reserve’s Beige Book release, which could influence monetary policy expectations. Prediction markets currently favor gold to outperform Bitcoin in 2025. Experts note this is likely a tactical, temporary migration rather than a permanent abandonment of crypto, driven by policy uncertainty, inflation concerns, and geopolitical risks. If economic conditions worsen or monetary policy becomes more hawkish, the rotation toward gold and away from crypto and other risk assets may persist. Increased volatility in crypto markets is expected if broader financial markets decline further.
