Gold’s Pause Is Bitcoin’s Pulse as Risk Appetite Returns Ahead of the Fed Week

Why It Matters

The shift signals a rotation back into higher‑beta assets and raises the prospect of further Bitcoin outperformance if macro fears continue to abate after the Fed decision.

Summary

Gold’s eight‑week rally paused as spot gold slid more than 6% from its $4,380/oz high to around $4,120 amid profit‑taking, heavy ETF outflows and easing U.S.–China trade tensions ahead of the Fed meeting. Traders now expect another 25 basis‑point cut, and that softer safe‑haven demand helped lift Bitcoin over 5% last week to roughly $113,500 as the BTC/gold ratio’s 14‑day RSI plunged to 22.20—the weakest reading since November 2022. The shift signals a rotation back into higher‑beta assets and raises the prospect of further Bitcoin outperformance if macro fears continue to abate after the Fed decision.