Gold has fallen into a bear market, dropping over 20% from its January 29 record of $5,594.82 to approximately $4,388 an ounce by March 23. This decline accelerated after a Middle East conflict began on February 28. Conversely, US spot Bitcoin exchange-traded funds (ETFs) continued to draw institutional capital, with Farside Investors data showing about $2.42 billion in net inflows over four weeks ending March 20. This divergence is notable as both Gold and Bitcoin are often seen as hedges against inflation and geopolitical stress. The retreat from Gold is linked to increased cash demand, sustained high interest rate expectations from the Federal Reserve, and a less supportive macro environment. LSEG Lipper data indicates significant weekly outflows from gold funds, suggesting investors are prioritizing liquidity.

Gold has fallen into a bear market, dropping over 20% from its January 29 record of $5,594.82 to approximately $4,388 an ounce by March 23. This decline accelerated after a Middle East conflict began on February 28. Conversely, US spot Bitcoin exchange-traded funds (ETFs) continued to draw institutional capital, with Farside Investors data showing about $2.42 billion in net inflows over four weeks ending March 20. This divergence is notable as both Gold and Bitcoin are often seen as hedges against inflation and geopolitical stress. The retreat from Gold is linked to increased cash demand, sustained high interest rate expectations from the Federal Reserve, and a less supportive macro environment. LSEG Lipper data indicates significant weekly outflows from gold funds, suggesting investors are prioritizing liquidity.