According to Bloomberg News, the prices have risen to the highest since the beginning of June since tensions between Russia and the West over Ukraine have escalated, coupled with a spike in inflation in the United States, which is being recorded as the strongest in 10 years. Simultaneously, the real interest rate, which is a crucial driver of gold, has surged this year, countering the inverse correlation between the two. And when a comparison is drawn between different assets on whether Bitcoin is a better option for storing value, the digital currency or the cryptocurrency is falling behind, to say, at least for the time being. Before the demand for haven over Ukraine took over, to some observers, the resilience of bullion had been a mystery, especially when it came to the tightening cycle of the Federal Reserve. One of the main concerns was that the central bank in the United States could trigger a recession if it increases rates quite frequently and to a level that is higher than what is required to tame inflation. Gold wins over Bitcoin As there is weakening demand for cryptocurrency, gold is being benefited from it, which is often seen as an alternative to fiat hedge, as per chief global strategist at BCA Research Inc., Peter Berezin. There was a more than 3% gain in Bullion in the current year, while Bitcoin was found to nosedive by 16%. In 2021, Bullion had lackluster after it attained an all-time high one year ago, before pandemic support and accommodative monetary policies. To date, there will undoubtedly be a rate liftoff in March, and as per estimates by economists of JPMorgan Chase & Co., there will likely be a 25 basis points increase as discussed in 9 meetings consecutively. This could adversely impact bullion, an asset with no interest. Surging risks globally have not yet been lost on the investors that have invested in ETFs or exchange-traded funds backed by the bullion. As of February 18th, it was found that there was a surge by little above 50 tons in holdings in SPDR Gold Shares from a 20 month low as recorded in December. The other supportive bullion drivers are physical demand arising from China and India and undisclosed central bank purchases being the other ones. Bloomberg News also reports that after an abysmal 2020, the biggest consuming nations are back on track. Shipments from Switzerland to China, and Switzerland being Europe’s key refining hub, surged by five times in January to a 5-year high. Imports by India were found to be the strongest in a decade, jewelry sales became twice as much, and the demand outlook continues to appear bright, as stated by the World Gold Council. However, the question remains that gold can continue sustaining levels at $1900 per ounce when geographical tensions become easier. Further Reading \t Is Gold Still a Good Investment? \t Is this the right time to go for short term gold investment? - 5 reasons why you should consider the 6-month funding \t Why do People opt for Gold Investments?