Gold price crumbles below $3,300 as trade hopes fade; US Dollar stays firm.
Gold prices drop even though US Treasury yields and the dollar index (DXY) are lower. Trump’s decision to keep tariffs on China without getting something in return has made the market less optimistic. Traders prepare for a busy week of important US economic data, including GDP, ISM, and Nonfarm Payrolls.
Gold prices fell below $3,300, losing over 1.60% after gaining on Thursday. The strong US dollar and news of a potential easing in the U.S.-China trade war contributed to the drop, with gold trading at $3,294.
Market conditions remain volatile due to President Trump’s comments. While traders reacted positively to news of China seeking tariff exemptions, Trump later said he wouldn’t remove tariffs without concessions from China. This shift hurt market sentiment, and despite a slight dip in the US dollar index (DXY), it stayed up 0.23% at 99.51, preventing gold from recovering. Traders appeared surprised and took profits ahead of the weekend.
Next week, traders are watching for the March US Job Openings and Labor Turnover Survey (JOLTS) report, the first report of the Gross Domestic Product (GDP) for Q1 2025, the ISM Manufacturing PMI, and April’s Nonfarm Payrolls data.
For the upcoming Federal Reserve meeting, traders believe there is a 92% chance that interest rates will stay the same. However, they expect the Fed funds rate to end the year at 3.45%, easing 86 basis points.
XAU/USD technical outlook: Remains bullish but poised to test $3,200
Gold price is still trending upward, but it is currently below $3,300 because buyers are not aggressively trying to push prices above $3,400. The Relative Strength Index (RSI) shows that buyer momentum is decreasing, which may allow sellers to drive the price of XAU/USD lower.
The first support level is at $3,250. If this level is broken, prices could drop to the April 3 peak of $3,167 and the 50-day Simple Moving Average (SMA) at $3,041.
On the other hand, if buyers can push the price back up to $3,300, the next resistance level is the April 22 high of $3,386, which could stop sellers from pushing prices down. The following resistance levels are $3,400, $3,450, and $3,500.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin’s price remains around $94,000 on Friday, increasing over 10% this week. US Bitcoin spot ETFs saw total inflows of $2.68 billion by Thursday, marking the highest weekly inflow since mid-December. A positive mood prevails as pro-crypto Paul Atkins becomes the new head of the US SEC, and Trump softens his comments on the Fed and China.
Institutional inflows to Bitcoin ETFs hit four-month highs.
This week, Bitcoin’s price rose due to strong demand from institutions. According to SoSoValue data, the US spot Bitcoin ETF had $2.68 billion in inflows by Thursday. This is the highest level since mid-December when Bitcoin first exceeded $100,000. If these inflows keep coming in and grow, Bitcoin’s price could go up even more.
Demand from public companies also stayed strong this week. MicroStrategy announced on Monday that it bought 6,556 BTC for $555.8 million. During the same time, Japanese investment firm Metaplanet purchased an extra 330 BTC for $28.2 million. Then, on Thursday, the firm bought another 145 BTC, increasing its total to 5,000 BTC.
When investment firms buy Bitcoin, prices usually increase because of higher demand and less supply. If this trend continues, Bitcoin may see steady price growth over time. However, short-term price changes are still likely as the market adapts to this new institutional interest.
Ethereum Price Forecast: ETH ETFs post first weekly inflows since February
Ethereum exchange-traded funds (ETFs) gained $157.1 million this week, their first positive week since February. This rise follows President Trump’s softer approach to China tariffs and Paul Atkins becoming SEC Chair. Ethereum (ETH) tested the $1,800 resistance level again, with investors showing uncertainty. On Saturday, ETH recovered to $1,800 after US spot Ether ETFs had their first weekly inflows since February.
Ethereum investors have pushed ETH exchange-traded funds (ETFs) to see their first weekly inflows since February.
Ethereum ETFs recorded net inflows of $104.1 million on Friday — their highest daily inflow since February 4, per SoSoValue data. As a result, the products saw a weekly net inflow of $157.1 million, which also marks their highest net buying activity since February.
The weekly inflow was dominated by Fidelity’s FETH, BlackRock’s ETHA, and Grayscale’s ETH.
Ethereum Price Forecast: ETH on the verge of clearing $1,800 key level
According to Coinglass data, Ethereum sustained $45.18 million in futures liquidations in the past 24 hours. The total amount of long and short liquidations is $15.37 million and $29.82 million, respectively.
ETH is retesting the $1,800 key resistance and 50-day Simple Moving Average (SMA) after three consecutive days of seeing a rejection near it. The consecutive small-bodied candlesticks near $1,800 signal indecision among bulls and bears.
Trump’s cryptocurrency is rising sharply after he invited top holders to dinner.
Donald Trump’s cryptocurrency price surged after he announced two unique events for top investors. The $Trump meme coin website states that the 220 largest holders will be invited to a private gala dinner with the president on May 22, called “the most EXCLUSIVE INVITATION in the world.”
Coinbase reports that $Trump’s price jumped over 70% after the announcement, but it remains below its record high of over $74 (£42.40) from January. This digital currency is part of several crypto ventures linked to Trump, who calls himself the “crypto president.”
In addition to the gala at the Trump National Golf Club in Washington, D.C., there will be a private VIP reception for the top 25 coin holders. Trump tokens, launched days before his inauguration on January 20, are currently worth about $2.5 billion. Some in the crypto industry criticized this event as “a stunt.”
First Lady Melania Trump launched a cryptocurrency before the inauguration. Meme coins support celebrities or viral moments and are often used by speculators for profit.
After returning to the White House, Trump signed an order to create a group to propose new crypto laws and established a Strategic Bitcoin Reserve and a Digital Asset Stockpile, which will hold seized coins from federal cases.
This week, Trump’s media company revealed its intention to launch exchange-traded funds (ETFs) encompassing digital assets and “Made in America” stocks. ETFs are investment funds holding various assets, allowing investors to buy and sell them like individual shares.
Economic indicators, geopolitical events, and market sentiments shape the financial landscape. Gold faces pressure from a strong US dollar and trade tensions, while Bitcoin and Ethereum thrive on institutional interest and positive regulatory news. Trump’s involvement could influence future cryptocurrency regulations. As traders prepare for key reports, the markets are pivotal. Investors should monitor essential policy decisions and economic data for insights.
