Bitcoin Weakness Echoes Through Gold as Traders React to Fed Signals

After reviewing the movements of gold futures and Bitcoin on the daily chart this week, I observe that gold futures have appeared to follow Bitcoin. This is occurring during a period of heightened uncertainty about a possible U.S. Federal Reserve interest rate cut in December, amid some signs of labor market weakness and ahead of the release of the Fed’s October meeting minutes.

On Tuesday, gold futures saw a steep fall, testing a low at $4091.62 after reaching a peak of $4250 on November 13, 2025. However, they reversed from these lows and closed the day at $4066.42.

On Wednesday, 4076.31, a mere gap-up of $10 pushed the futures to day’s high at $4099.71, a level just below the significant resistance at $4104.43, and a low at $4056.34, currently trading at $4093.46.

On the other hand, on analyzing the movements of Bitcoin (BTC/USD), I find that Bitcoin was also on a slide since November 11, 2025 after testing a peak at $104798, tested a low at $89398 on November 18, before bouncing back up to $93038 on Wednesday’s opening but still on a slide, currently trading at $91263 after testing the day’s low.

Undoubtedly, gold futures look ready to follow this move by Bitcoin on Wednesday as two top U.S. Army officials have made a rare wartime visit to Kyiv by U.S. President Donald Trump’s administration, arriving on an unannounced trip for talks with Ukraine’s leaders in an attempt to revive stalled peace talks with Russia, Politico reported on Wednesday.

The Trump administration has been secretly formulating a new plan to end the war in Ukraine in consultation with Russia, Axios reported on Tuesday, citing U.S. and Russian officials.

On the other hand, the geopolitical situation still looks grim as Tuesday’s U.S. approval of the sale of fighter jets and other aircraft parts to Taiwan for $330 million was its first such deal since President Donald Trump took office in January, prompting thanks from Taipei and anger in Beijing.

The arms sales news comes amid a worsening diplomatic crisis between Beijing and Tokyo over Taiwan, which China claims as its own territory, although Taipei’s government rejects Beijing’s sovereignty claims. while on Sunday, Chinese coast guard ships sailed through waters around a group of East China Sea Islands controlled by Japan but claimed by China.

I find that such a scenario could spur indecisiveness for the traders, while declining interest rate cuts bets and easing trade tariffs could keep the exhaustion in precious metals and cryptocurrencies.

Disclaimer: Readers are advised to take any position in gold and bitcoin at their own risk, as this analysis is only based on observations.