Gold falls below $4,000, Bitcoin slips under $60,000 as risk assets sell off
Gold prices fell below $4,000 per ounce for the first time since November 2025 on Wednesday, while Bitcoin dropped beneath the $60,000 mark as investors reacted to expectations of tighter US monetary policy and a broader retreat from risk assets.
Gold declined 3.3% on the day to around $3,974.60 per ounce by 1310 GMT, extending losses to a seven-month low. The selloff intensified after US Federal Reserve officials left interest rates unchanged but signaled growing support for future rate hikes. Fed Chair Kevin Warsh also reiterated the central bank’s commitment to restoring price stability, reinforcing expectations that borrowing costs could remain elevated for longer.
Higher interest rates typically reduce the appeal of non-yielding assets such as gold.
The precious metal also faced pressure as an interim US-Iran peace agreement eased concerns over potential energy supply disruptions and inflation risks, reducing demand for traditional safe-haven assets.
Bitcoin extends losses as investors cut risk exposure
Cryptocurrency markets also came under pressure, with Bitcoin falling about 5% to $59,460 by 1740 GMT after briefly hovering near $60,000 during the Iran conflict.
The global cryptocurrency market capitalization dropped 4% over the past 24 hours to $2.06 trillion, according to CoinMarketCap data. Bitcoin’s market value fell to $1.19 trillion, while daily trading volumes jumped 17.4% to $35.5 billion, indicating heightened selling activity.
Ethereum, the second-largest cryptocurrency, declined 5.4% to around $1,567, with most major altcoins also trading lower.
Analysts attributed the decline to a broader risk-off mood in financial markets, as investors reduced exposure to speculative assets amid weakness in technology and artificial intelligence-related stocks and uncertainty over the Federal Reserve’s policy outlook.
Despite easing geopolitical tensions following progress in US-Iran negotiations, digital assets failed to benefit from improved sentiment, with investors favoring cash and lower-risk investments.
Bitcoin is now down 22.4% over the past month and has erased its gains for the year, falling 32% since the start of 2026.
Source:AA
