Gold and Bitcoin have both been on a wild ride in 2025, with prices for each asset repeatedly breaking new records—yet it’s gold that’s been stealing the spotlight. The year has seen dramatic shifts, especially as geopolitical tensions and tariff fears push investors to seek out safe havens. But just as the gold market seemed unstoppable, a sudden reversal on August 12 has reminded everyone that even the most reliable assets can surprise.
According to MarketWatch, gold’s rally this year gained extra momentum after the United States announced new import taxes on gold bars weighing 1 kilogram and 100 ounces. This triggered a rush of buying, as investors scrambled to lock in gains before the tariffs took effect. However, when the Trump administration clarified that imported gold would likely be exempt from these taxes, the rally lost some steam. The episode highlighted how quickly policy signals can ripple through global markets, with gold’s price swings echoing broader anxieties about trade and political stability.
But the story doesn’t end there. On August 12, as reported by Phu Nu Today, the international gold market opened with a sharp downturn. Spot gold prices dropped dramatically to about $3,345.54 per ounce, nearly $55 lower than the previous session. December 2025 gold futures also slipped, trading around $3,404 per ounce. This rare dip followed weeks of relentless gains and new highs, catching many by surprise.
What triggered this sudden reversal? The culprit was the US dollar, which surged in strength on international currency markets. As the dollar became more attractive, investors began to pull out of gold—a non-yielding asset—in favor of other, potentially more profitable channels. The possibility of tighter US import tariffs on gold further fueled selling pressure, especially after the hot streak of recent price increases. For those watching the market, it was a stark reminder that gold, despite its reputation for stability, is still subject to sharp corrections.
In Vietnam, the effects of the global downturn were felt immediately, though the drop was less severe. Major gold brands in Ho Chi Minh City and Hanoi, including SJC, DOJI, and PNJ, all adjusted their retail prices downward. SJC gold bars were quoted around 122.7 to 123.9 million VND per tael, down about half a million VND from the previous day. Even so, domestic gold prices remained stubbornly higher than global rates—by as much as 13 to nearly 17 million VND per tael, depending on the conversion method. This persistent gap reflects the unique dynamics of the Vietnamese market, where supply, demand, and psychological factors often diverge from international trends.
Gold jewelry prices followed a similar pattern. DOJI lowered its 9999 gold jewelry prices to between 117 and 119.5 million VND per tael, while Phu Quy and Bao Tin Minh Chau made similar adjustments. The message was clear: even after a correction, gold in Vietnam is still trading at a significant premium to world prices. For many, this premium is a barometer of local sentiment and the challenges of importing gold in a tightly regulated market.
Stepping back, the broader narrative of 2025 is one of gold’s dominance over Bitcoin, at least for now. Supporters of Bitcoin have long touted it as "digital gold," a modern alternative that could serve as a hedge in turbulent times. Yet, as the year has unfolded, traditional gold has outperformed its digital rival. According to Longtermtrends, the Bitcoin-to-gold ratio has declined, signaling gold’s relative strength. As of August 12, gold prices had climbed 30.8% since the start of the year, while Bitcoin was up 25.1%—both impressive, but gold clearly ahead.
Rob Haworth, Director of Investment Strategy at U.S. Bank Asset Management Group, observed, "This year, capital is flowing more into gold than digital currencies like Bitcoin." He explained that Bitcoin still behaves like other risky assets, showing volatility that limits its appeal as a safe haven during periods of instability. This view was echoed by Konstantin Anissimov, CEO of Currency.com, who noted that gold’s rally has been strongly supported by net buying from global central banks. "When markets are unstable, governments prefer assets that have proven their resilience over thousands of years, rather than those with just a few decades of history," Anissimov said. He added that no major government has yet adopted Bitcoin as a reserve asset, despite President Donald Trump’s March 2025 executive order to establish a federal Bitcoin reserve fund—a move that has yet to yield further details.
Still, Bitcoin’s advocates aren’t backing down. Peter Eberle, Chairman and CIO of Castle Funds, pointed out that Bitcoin may have more upside in the long run as acceptance by financial institutions grows. "Institutional capital flowing into Bitcoin is still in its early stages. As regulatory frameworks become clearer and governments take a friendlier stance, we’re just at the beginning of the adoption process," Eberle wrote. Meanwhile, more companies are adding Bitcoin to their balance sheets, reflecting a steady—if cautious—embrace of the digital asset.
For investors tracking the performance of gold-related funds, the numbers are striking. The VanEck Gold Miners ETF has soared 71% since the start of 2025, while the SPDR Gold Shares ETF is up 29%, according to FactSet. Both funds have outpaced the broader US stock market, underscoring gold’s renewed appeal as a hedge against uncertainty.
Yet, even with these gains, the gold market remains as unpredictable as ever. The recent correction, while sharp, doesn’t necessarily signal a long-term downtrend. As Phu Nu Today noted, "Today’s price drop does not necessarily indicate a long-term downtrend." Instead, it may be a temporary pause after a period of overheating—a reminder that even the safest of havens require vigilance and careful timing.
Looking ahead, analysts at Currency Research Associates believe that gold’s positive momentum is likely to persist in the short term, while Bitcoin faces a more negative outlook for now. But as always, the landscape can shift rapidly. Central bank policies, geopolitical developments, and the ever-present search for safety will continue to shape the fortunes of both gold and Bitcoin.
For those navigating these choppy waters—whether seasoned investors or newcomers—the key is to stay informed and recognize that every surge or dip is both an opportunity and a challenge. In the end, understanding where you stand in the gold (or Bitcoin) game is just as important as the numbers on the screen.
