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Tag: bitcoin

  • Precious Metals & Crypto Under Pressure from Strong Dollar

    Precious Metals & Crypto Under Pressure from Strong Dollar

    Gold & Bitcoin React to Strong US Data and Crypto Regulation Moves

    Gold prices remained largely unchanged on Friday and were on track for a weekly decline, pressured by a stronger dollar and solid US economic data. Platinum, however, surged to its highest level since August 2014.

    As of 06:40 GMT, spot gold held steady at $3,339.20 per ounce, while US gold futures hovered at $3,344.60. Gold is set for a 0.5% weekly drop.

    Despite the dollar slipping by 0.1% against major currencies on Friday, it was still poised for a second consecutive weekly gain, making dollar-priced gold more expensive for holders of other currencies.

    ✅ US Economic Strength Supports Dollar

    Recent economic data continues to underscore the resilience of the US economy, limiting expectations of aggressive monetary easing by the Federal Reserve:

    • Retail Sales: Jumped 0.6% in June, surpassing forecasts after a revised 0.9% decline in May.
    • Jobless Claims: Fell by 7,000 to 221,000, below expectations of 235,000.
    • CPI Data: Reinforced the Fed’s cautious stance on rate cuts, indicating persistent inflation.

    Political tensions surfaced again with President Trump denying plans to dismiss Fed Chair Jerome Powell, yet leaving the door open to the possibility.

    Investors remain on edge with less than two weeks until the August 1st tariff deadline, contributing to market caution.

    ✅ Outlook for Gold Prices

    Market consensus suggests that any future Fed rate cuts, expected in 2025 and 2026, could be key drivers for gold’s potential rebound.

    ✅ Precious Metals & Crypto Movements

    • Asian currencies: Slight changes on Friday but on course for weekly losses due to dollar strength and Fed policy uncertainty.
    • Asian markets: Watching Japan’s inflation data closely.
    • US Dollar Index: Down 0.2% in Asian trading but set for a weekly gain.

    Meanwhile, Bitcoin climbed above $120,000, heading for a fourth consecutive weekly gain after the US House of Representatives passed three significant crypto regulatory bills.

    Bitcoin rose 1.7% to $120,552.8, having touched an all-time high of $123,000 earlier in the week. However, profit-taking and regulatory uncertainties capped further gains.

    These bills aim to establish a clearer legal framework for digital assets, signaling a unified push during “Crypto Week” to reform crypto regulation in the US. While progress is evident, the final approval in the Senate remains pending.

    ✅ Conclusion:

    Despite a slightly weaker dollar on Friday, solid US data and political tensions continue to weigh on precious metals while crypto markets rally cautiously on hopes for regulatory clarity. Investors should stay alert for policy shifts and upcoming economic indicators.

  • Today’s Forex & Economic News

    Today’s Forex & Economic News

    1. USD Holds Firm on Hawkish Fed Expectations 

    • The US Dollar (USD) remains strong as traders reduce expectations for multiple Fed rate cuts in 2025. 
    • The DXY (Dollar Index) stays steady near 100. 
    • Fed officials emphasize patience, with the market now pricing in just one rate cut for the year (vs. earlier expectations of two). 

    2. EUR Weakness Persists as ECB Eyes More Easing 

    • The Euro (EUR) remains under pressure, trading near 1.0850 (EUR/USD). 
    • ECB signals openness to additional rate cuts, in contrast with the Fed’s more hawkish tone. 

    3. GBP Awaits UK Inflation Data (May 22) 

    • The British Pound (GBP) remains range-bound. 
    • Traders are awaiting UK CPI data; a stronger-than-expected reading could delay Bank of England rate cuts, supporting GBP in the short term. 

    4. Yen Near Intervention Levels (USD/JPY at 145.00) 

    • The Japanese Yen (JPY) remains weak, with USD/JPY hovering around 145.00. 
    • Japan’s Finance Ministry has reiterated concerns and warned about potential currency intervention. 

    5. Commodity Currencies Under Pressure 

    • AUD/USD slips to 0.6400 as the Reserve Bank of Australia maintains a neutral stance. 
    • The Canadian Dollar (CAD) weakens with USD/CAD reaching 1.3950 amid a decline in oil prices. 

    Gold & Bitcoin Prices (Corrected) 

    • Gold (XAU/USD): $2,230 – Supported by inflation fears and geopolitical tensions. 
    • Bitcoin (BTC/USD): $103,000 – Trading in a tight range as crypto sentiment remains mixed. 

    Note: Prices based on latest available data. Refer to live charts for real-time updates. 

    Upcoming Economic Events (Next 24 Hours) 

    • Fed Speakers: Hawkish remarks could further support the USD. 
    • German PPI (Apr): Forecasted at +0.3% MoM – May briefly impact EUR. 
    • US Treasury Yields: The 10-year yield is near 4.45%, supporting the USD outlook. 

    Market Sentiment 

    • A risk-off tone continues due to uncertainty surrounding Fed policy and ongoing geopolitical tensions. 
    • Gold remains firm as a safe haven. Bitcoin holds its range amid cautious investor sentiment. 

  • Markets in Motion: Gold, Oil, Bitcoin, and Tariffs Stir Investor Sentiment 

    Markets in Motion: Gold, Oil, Bitcoin, and Tariffs Stir Investor Sentiment 

    Global financial markets are experiencing notable shifts this week as investors respond to geopolitical tensions, trade policy developments, and expectations around U.S. monetary policy. Here’s a detailed look at the key movements: 

    1. Gold Hits Two-Week High as a Safe-Haven Demand Rises 

    Global gold prices climbed to a two-week high on Tuesday, driven by growing demand for safe-haven assets. This surge comes amid heightened investor concerns over newly proposed U.S. tariffs, adding to the uncertainty in global markets. 

    • U.S. President Donald Trump announced on Sunday a 100% tariff on foreign-produced films, although the implementation details remain vague. 
    • On Monday, he signaled plans to impose further tariffs on pharmaceutical products within the next two weeks. 

    These policy moves have intensified market anxiety, prompting investors to seek refuge in gold and other precious metals. 

    2. All Eyes on the Federal Reserve 

    Investors are also closely monitoring the U.S. Federal Reserve’s upcoming monetary policy meeting. Key expectations include: 

    • A potential update or guidance on interest rate strategy. 
    • Comments from Fed Chair Jerome Powell, scheduled for Wednesday, which may provide insights into the future path of U.S. economic policy. 

    The Fed has kept its benchmark interest rate steady between 4.25% and 4.50% since December, and markets are eagerly awaiting any shift in stance. 

    3. Currency Markets Reflect Uncertainty 

    • Most Asian currencies fell on Tuesday. 
    • The U.S. Dollar remained steady at 99.6, reflecting continued caution amid trade tensions and Fed-related anticipation. 

    Trade negotiations between the U.S. and China are contributing to market jitters, particularly as protectionist rhetoric intensifies. 

    4. Precious Metals Rally Alongside Gold 

    • Silver jumped by 1.7% to reach $33.05 per ounce. 
    • Platinum also gained 1.5%, climbing to $973.20 per ounce. 

    These gains further illustrate the market’s pivot toward traditional safe-haven assets during periods of volatility. 

    5. Oil Prices Rebound, But Risks Remain 

    Crude oil prices saw a sharp rebound in Asian trading on Tuesday after previously touching a four-year low. 

    • The recovery was attributed to a technical bounce and short-term positioning. 
    • Despite the uptick, oil remains near its lowest levels in years due to persistent concerns about slowing demand and rising global supply. 

    The ongoing trade tensions between the U.S. and China are also casting a long shadow over energy markets. 

    6. Bitcoin Holdings Expand Despite Volatility 

    In the crypto space, institutional interest continues to grow: 

    • On Monday, Strategy disclosed to the U.S. Securities and Exchange Commission (SEC) that it purchased 1,895 additional Bitcoins worth $180.3 million, at an average price of $95,167 per coin. 
    • The purchase was financed by selling $128.5 million in common stock. 

    This brings the company’s total Bitcoin holdings to 555,450 units, acquired at a total cost of $38.08 billion—with an average purchase price of $68,550. 

    Given the current Bitcoin price approaching $94,000, the market value of the company’s Bitcoin assets now exceeds $52 billion. 

    Conclusion 

    From rising gold and silver prices to expanding Bitcoin holdings and a recovering oil market, global financial dynamics are shifting quickly. The combination of trade war fears, monetary policy uncertainty, and investor repositioning is creating a complex but opportunity-rich environment for traders and investors alike.