Gold, Breaks through historical first 3,400 dollars...Intensified competition between digital and traditional safe assets

On the 21st (local time), the spot gold price exceeded $3,400 per ounce for the first time in history. According to Coinness Market Monitoring, gold is currently trading at $3,401.36 per ounce, up 2.60% from the previous day, marking a new all-time high.

The recent surge is interpreted as a result of a sharp increase in demand for safe assets due to the Federal Reserve's interest rate uncertainty, the Trump administration's tariff policy, and the heightened US-China trade conflict. In particular, as the status of US Treasury bonds and the dollar is compromised, traditional physical assets like gold are regaining attention.

Recently, gold has shown a robust upward trend with investment inflows through ETFs as well as an expansion of physical demand. In contrast, digital assets like Bitcoin have been experiencing repeated fluctuations and are entering a short-term adjustment phase.

As a result, there is analysis in the market that a new phase of competition for dominance will open between Bitcoin, which has been noted as a digital safe asset, and gold, which has functioned as a means of asset preservation for thousands of years. Some suggest that the two asset classes can coexist complementarily and that a diversified investment strategy within investor portfolios could be further strengthened.