Russia and Ukraine have recently exchanged missiles, leading to heightened geopolitical tensions, which have driven safe-haven buying, causing gold prices to reclaim the $2,700 level on the 22nd, surging nearly 6% in a week. Bitcoin is also viewed as a safe-haven asset, similar to gold, and could continue to rise due to safe-haven buying. (Background: U.S. lawmakers recommend selling Fed gold to buy 1 million bitcoins as a strategic reserve) (Context: Trump's election victory saw gold prices drop for 5 consecutive days! Falling below $2600, will decreased safe-haven demand pose a hidden concern for Bitcoin?) Since Trump's election victory, the U.S. dollar has appreciated strongly, while gold prices, which were rising before the election, have begun to weaken, dropping to a two-month low of $2,536 in mid-November. However, as tensions between Russia and Ukraine have escalated recently, gold prices have surged on safe-haven buying, with spot gold closing at $2,712 on Friday, marking a new high since early November. Gold prices skyrocketed by 5.7% throughout the week, recording the largest weekly increase since March 2023. Spot gold prices. Source: investing.com. The Russia-Ukraine conflict, which has been ongoing for 33 months, is rapidly escalating. This month, after the U.S. and the U.K. allowed Ukraine to use their advanced weapons to attack targets within Russia, Russia recently lowered the threshold for using nuclear weapons and launched hypersonic medium-range ballistic missiles at Ukraine. Russian President Putin stated on Thursday that Russia tested its self-developed "Hazel" medium-range ballistic missile that did not carry a nuclear warhead, hitting a military facility in Ukraine, and warned of possible further attacks, indicating that Russia will continue missile tests depending on the level of threat to its security, including tests under combat conditions. The range of the medium-range ballistic missile is 3,000 to 5,500 kilometers, allowing it to strike anywhere in Europe or the western United States from Russia. Putin pointed out that the Hazel missile is a brand new research achievement, particularly powerful in large-scale cluster operations against enemy targets, comparable to strategic weapons, and currently, no technology in the world can intercept this missile. Analysts bullish on gold. Alex Ebkarian, COO of Allegiance Gold, stated that the escalation of the Russia-Ukraine conflict seems to be expanding into a conflict between Russia and the United States. The war will certainly enhance short-term safe-haven appeal, coupled with the ongoing changes in Federal Reserve policy and the inflation risks brought about by potential tariffs under Trump, the outlook for gold remains strong, with expectations of hitting $2,750 by mid-December. FXStreet analyst Christian Borjon Valencia indicated that as U.S. Treasury yields decline, gold prices have risen to a two-week high, with geopolitical tensions continuing to play a role in maintaining gold buying. The escalating geopolitical concerns, including the potential expansion of the Russia-Ukraine conflict, are driving safe-haven demand for gold, potentially paving the way for gold prices to retest historical highs of $2,790. Will Bitcoin be propelled by safe-haven buying? Notably, Bitcoin is also viewed as a safe-haven asset, similar to gold, and could continue to rise due to safe-haven buying. However, gold is more sensitive to war; gold prices might see an immediate surge, while the increase in Bitcoin demand may require a slight easing of market risk expectations before funds begin reallocating to higher-risk, higher-return potential assets. However, George Milling-Stanley, head of gold strategy at State Street Bank, warned on the 23rd that Bitcoin's recent surge could mislead investors into overlooking gold's stability. He believes that Bitcoin resembles a return-driven investment, while gold offers long-term stability. He also criticized Bitcoin promoters for using the term "mining" to mislead the market, asserting that gold remains a more reliable investment choice: Bitcoin promoters call it mining because they want Bitcoin to appear like gold, perhaps to diminish some of gold's aura. Gold was priced at $450 twenty years ago, and it is now five times that price. If we look at five times, then twenty years from now, the price of gold should exceed $100,000. Related reports: Gold records the largest single-day drop in nearly six months; has the safe-haven market vanished? Note that the Federal Reserve will announce its interest rate decision at 3 a.m. Tether relies on gold; U.S. Treasuries netted $2.5 billion in Q3! Total assets and equity both reached historic highs. Gold approaches a new high of $2,800; U.S. presidential elections and war risk drive increases surpassing the S&P 500. Will Bitcoin be next? "The surge in safe-haven demand! Gold rises 6% in a week, returning to $2,712; how will it affect Bitcoin's market?" This article was first published on BlockTempo (the most influential blockchain news media).

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