Crypto is pumping again. Bitcoin stays strong above $100K, and altcoins are flying. But not everyone is holding. Many traders who bag-held during the January dip now see their chance to exit. So, where does the money go next? While some stay in crypto, others are diversifying. And one classic choice is shining again—Gold.
Let’s look at why gold is back on trader watchlists and what its price action tells us now.
A Look Back: Historical Price Action of Gold
To understand the present, we must look at the past.
50 Years Ago:
In the 1970s, gold was under $100 an ounce. But after the U.S. dropped the gold standard, inflation surged. Gold shot up to $850 in 1980. That was its first big breakout.
10 Years Ago:
In 2015, gold hovered around $1,100. It was a quiet time. But in the following years, fears of global instability pushed it higher.
5 Years Ago:
By 2020, during COVID and global uncertainty, gold hit a new high—over $2,070. It became a safe haven again.
1 Year Ago:
In the past year, gold quietly climbed from around $2,000 to a peak above $3,300 in 2025. This steady rise reflects inflation fears and investor caution.
Gold as the Classic Inflation Hedge
Gold shines brightest when inflation rises.
Governments have been printing money like never before. The global M2 money supply has ballooned over the past decade. This makes fiat weaker and inflation stronger.
That’s where gold steps in. It’s a limited resource and historically trusted. Investors look at it as a store of value when cash loses its power.
Even with new inflation hedges like Bitcoin, gold still holds its ground. It’s less volatile and globally accepted.
Related: Trade Stocks with Crypto
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Current Price Action: Gold Holds Above $3,200
This week, gold is holding firm.
After soft U.S. inflation data, the price stabilized near $3,250. Earlier pessimism faded, and investors became cautious again. That’s when gold usually gains traction.
Analysts are watching the $3,248–$3,289 zone. A breakout above this range could trigger a new rally. But resistance remains strong. If the bulls push above $3,341, it may test new highs.
On the flip side, if gold dips below $3,195, it could drop to the 55-day moving average at $3,121. That’s where many traders will watch for support.
Why Gold Popped After US-China Tariff Truce
A 90-day trade truce between the U.S. and China helped global stocks rally. This “risk-on” mood hurt gold initially.
The U.S. slashed tariffs from 145% to 30%. China followed by cutting from 125% to 10%. That eased fears temporarily. But there are no set dates for follow-up talks or clear agreements.
So, experienced traders stayed cautious. Many rotated back into gold once the Monday dip occurred.
CPI Data Holds the Key to Gold’s Next Move
Everyone’s now watching inflation numbers.
April’s Consumer Price Index (CPI) could determine what the Federal Reserve does next. If CPI comes in soft, gold could rise. It would mean less pressure for rate hikes.
But if inflation surprises to the upside, yields may rise and push gold lower.
Barclays expects a modest CPI increase of 0.3% month-over-month. Still, if the Fed delays cuts, gold might struggle to rally further.
Citi’s Gold Forecast: Rangebound for Now
Citi Research recently lowered its 3-month gold target from $3,500 to $3,150. They expect gold to trade between $3,000–$3,300.
Why? They see less geopolitical risk and weaker jewelry demand. Also, more people are selling scrap gold.
However, there’s still strong demand from ETF buyers and cautious investors. As long as inflation remains sticky and fiat concerns linger, gold isn’t out of the game.
Technical Outlook: Bears Lurking Below $3,200
The gold market looks fragile, even with this bounce.
The critical level to watch is $3,201.95. If that breaks, the next target becomes $3,145. That’s also where the 50-day moving average sits.
Resistance sits above $3,318, and unless bulls push past that, the upside is limited.
Christopher Wong from OCBC Bank says:
“Some degree of caution remains warranted. We see consolidation in the range of $3,150 to $3,350 an ounce.”
In short, the market is undecided—but volatility could return fast.
Final Thoughts: A Golden Opportunity?
Crypto is booming again, but smart traders are eyeing exits.
Gold offers a familiar hedge. It’s less exciting than meme coins, but it’s more reliable during uncertain times.
If inflation stays sticky or geopolitical drama returns, gold could push higher. If not, expect range-bound movement as markets wait for the next macro signal.
Either way, it’s wise to keep gold on your radar—especially if you’re looking to diversify your crypto gains without stepping out of the digital asset world.
And if you’re ready to start, remember you can do it with crypto.
If you enjoyed this blog, check out our recent blog about Solana’s bull flag pointing to $220
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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