Demand for safe haven surges! Gold rose 6% in a single week and returned to $2,712. How will it affect the Bitcoin market?

Since Donald Trump's election victory, the US dollar has strengthened significantly, and the gold price, which had been rising steadily before the election, has started to weaken, falling to a 2-month low of $2,536 in mid-November. However, with the escalating Russia-Ukraine tensions, safe-haven buying has driven the gold price to surge, with spot gold prices closing at $2,712 on Friday, a new high since early November. Gold prices soared 5.7% for the whole week, marking the largest weekly gain since March 2023. The Russia-Ukraine conflict, which has been raging for 33 months, is rapidly escalating. This month, after the US and UK allowed Ukraine to use their advanced weapons to attack targets within Russia, Russia has lowered the threshold for using nuclear weapons and launched hypersonic intermediate-range ballistic missiles at Ukraine. Russian President Putin said on Thursday that Russia had tested its self-developed "Birch" intermediate-range ballistic missile, which did not carry a nuclear warhead, and hit a Ukrainian military facility, warning that there could be more attacks, and Russia will continue to test new missiles, including under combat conditions, depending on the level of threat to its security. Intermediate-range ballistic missiles have a range of 3,000-5,500 km, allowing them to strike anywhere in Europe or the western United States from Russia. Putin stated that the Birch missile is a brand-new research achievement, and its power, especially in large-scale cluster operations against enemy targets, can rival strategic weapons, and there is currently no technology in the world that can intercept this missile. Analysts Bullish on Gold Allegiance Gold COO Alex Ebkarian said the escalating Russia-Ukraine conflict appears to be expanding into a conflict between Russia and the US. The war will certainly increase the short-term appeal of safe-haven assets, and with the continued shift in Federal Reserve policy and the inflation risk from potential trade tariffs under Trump, the outlook for gold remains strong, with expectations of a test of $2,750 by mid-December. FXStreet analyst Christian Borjon Valencia stated that the decline in US bond yields has pushed gold prices to a two-week high, and the ongoing geopolitical tensions are sustaining the gold buying momentum. The escalating geopolitical concerns, including the potential for the Russia-Ukraine conflict to escalate, are paving the way for gold to retest its historical high of $2,790. Will Bit also be Driven by Safe-Haven Buying? It is worth noting that Bit is also seen as having a safe-haven function, similar to gold, and may also benefit from safe-haven buying to continue its rally. However, gold is more sensitive to war, and the gold market may see a sharp rally first, while the increase in Bit demand may have to wait until the market risk expectations ease slightly, and capital begins to reallocate to higher-risk, higher-return assets. However, State Street's head of gold strategy, George Milling-Stanley, warned on the 23rd that the recent surge in Bit may mislead investors to overlook the stability of gold. He believes that Bit is more like a return-driven investment, while gold provides long-term stability, and he also criticized the Bit promoters' use of the term "mining" as misleading, arguing that gold remains a more reliable investment choice.