Gold has delivered an outstanding performance this year, standing out among major assets including Bitcoin. However, gold is not alone in the spotlight - other precious metals including silver, platinum, and palladium have also posted significant gains, all outperforming Bitcoin.

According to TradingView data, gold prices have soared 44% this year, reaching a record high of $3,784 per ounce. Silver has climbed 53% to $44.32 per ounce, platinum has surged 60% to $1,452 per ounce, while palladium has gained 33% to $1,207 per ounce.

Meanwhile, Bitcoin, often referred to as "digital gold," has failed to keep pace with precious metals, rising just over 20% this year to $113,000.

Year-to-date performance data makes it crystal clear: amid deteriorating fiscal outlooks in developed economies, mounting threats to Federal Reserve independence, and President Trump's renewed trade war initiatives, precious metals led by gold remain investors' preferred safe-haven and inflation-hedge instruments.

Additionally, central banks' diversification strategies of increasing gold holdings have provided strong tailwinds for gold and its precious metal counterparts. Research from the European Central Bank shows global central bank gold reserves total approximately 36,000 tons.

Central banks' gold-buying spree began following the COVID-19 outbreak and accelerated further after the Russia-Ukraine conflict erupted in 2022, with both events intensifying global inflationary pressures. Over the past three years, global central banks have purchased over 1,000 tons of gold annually, setting records at a pace more than double the previous decade's average.

In contrast, Bitcoin has yet to appear on central bank balance sheets, limiting its role as a reserve asset. Furthermore, reports suggest that as Bitcoin prices exceeded $110,000, some early wallets continue to sell or distribute Bitcoin, which has dampened its gains. These sales allegedly offset inflows from ETFs (Exchange-Traded Funds).

Notably, Deutsche Bank released a report on Monday stating that while gold and cryptocurrencies have diverged in the short term, both asset classes are expected to develop in tandem over the coming years. Deutsche Bank indicated that by 2030, central bank balance sheets may feature both gold and Bitcoin.