Gold price climbed by more than 1% due to a weaker US dollar, amid escalating geopolitical tensions.
The DXY index fell by 0.32% to 100.31 as US yields dropped, making Gold more attractive. Trump suggested an 80% tariff on China, and markets are preparing for important trade talks in Switzerland. The conflict between India and Pakistan has escalated, increasing safe-haven investments as global risk aversion rises.
Gold price rose by over 1% on Friday as the US Dollar (USD) lost value after two days of gains, due to lower US yields. Concerns about global stability increased demand for Gold. At this point, XAU/USD is trading at $3,338.
Wall Street saw losses as traders prepared for a Saturday meeting between US and Chinese officials in Switzerland. While there is hope that the ongoing trade conflict might ease, investors are cautious ahead of these discussions.
On Friday, US President Donald Trump stated on social media that an “80% tariff on China seems right!”
Bullion prices continue to be elevated as tensions between India and Pakistan have escalated. Both nations are accusing one another of employing drones and artillery during the ongoing conflict’s third day.
The US Dollar Index (DXY), which measures the dollar’s strength against a set of six currencies, has surpassed the 100.00 mark and is currently down 0.32% at 100.31, providing a boost for Gold.
Multiple Federal Reserve (Fed) officials made statements on Friday, highlighting economic uncertainty and trade policy risks. US tariffs may lead to inflation and complicate the central bank’s efforts to achieve its dual mandate objectives.
Gold price rises underpinned by low US Treasury yields.
- US Treasury bond yields are rising following the Fed’s decision on Wednesday. The US 10-year Treasury note yield remains firm at 4.371%. Meanwhile, US real yields are also steady at 2.81%, as indicated by the US 10-year Treasury Inflation-Protected Securities yields.
- The World Gold Council revealed that the People’s Bank of China (PBoC) added 2 tonnes to its Gold reserves in April, for the sixth consecutive month. The National Bank of Poland (NBP) increased 12 tonnes in April to 509 tonnes, while the Czech National Bank increased its reserves by 2.5 tonnes in April.
- Swap markets have so far priced in the Fed’s first 25 basis points (bps) rate cut for the July meeting, and they expect two additional reductions towards the end of the year.
XAU/USD technical outlook: Gold price jumps back above $3,300
The gold price rally paused as the yellow metal retreated below $3,400. Nevertheless, momentum indicates buyers are stepping in, as depicted by the Relative Strength Index (RSI), hinting that the non-yielding metal could test the next key resistance level at $3,350 toward $3,400.
Conversely, Gold could retreat further on a daily close below $3,300, exposing the May 1 cycle low of $3,202.
US Dollar slides as markets brace for China trade talks
- US Dollar Index slips below 100.40 after rejection near one-month highs.
- US-China talks in Switzerland loom large over weekend headlines.
- Fed officials stress stable inflation expectations amid economic uncertainty.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, reverses sharply on Friday after hitting a near one-month high of 100.86 earlier in the day. Disappointment surrounding the so-called US-UK trade deal weighed heavily on the Greenback, with investors focusing on this weekend’s critical trade negotiations between the United States and China in Switzerland.
Daily digest market movers: US Dollar softens ahead of key talks
- Markets are writing off the US-UK trade deal as non-substantive, with US tariffs on UK goods remaining at 10%.
- Market focus shifts to US-China trade talks this weekend, where discussions are expected to be tense and inconclusive.
- President Trump hinted that tariffs on Chinese goods could fall to 50% if cooperation improves, though skepticism prevails.
- Chinese refineries imported 11.7 million barrels daily in April, with stockpiling driven by lower crude oil prices.
US Dollar Index technical analysis: DXY tests support
The US Dollar Index (DXY) trades around the 100.00 level, down over 0.30% on the day, after earlier testing highs near 100.86. The Relative Strength Index (RSI) at 46 and the Ultimate Oscillator at 59 show neutral momentum, while the Moving Average Convergence Divergence (MACD) flashes a buy signal. The Average Directional Index at 44 remains neutral, indicating no strong trend bias.
The 20-day Simple Moving Average (SMA) at 99.64 supports short-term buyers, but longer-term resistance remains firm, with the 100-day SMA at 105.11 and the 200-day SMA at 104.31 signaling continued selling pressure. Immediate support is located at 100.28, 100.24, and 99.97, while resistance is seen at 100.73, 100.80, and 100.86.
BTC price stalls at $103K with $120B inflows skewed towards ETH, SOL, and DOGE
- The cryptocurrency market cap surged above $3.2 billion on Friday, rising 3.7% with an approximate $120 billion increase.
- Despite an additional $117 million in inflows toward Bitcoin ETFs, BTC’s rally stalls below $103,000, with gains capped at 3.6%.
- Dogecoin, Ethereum, and Solana posted double-digit gains on the 24-hour price chart.
The cryptocurrency market cap rose by 4% on Friday, with an increase of over $120 billion in the last 24 hours. Rising institutional demand, expectations of hawkish monetary policy, and BTC adoption in regional US states have added to the bullish market momentum this week.
Bitcoin market update
– Bitcoin price rose as high as $104,361 on Friday before facing a major sell-off as investors began to rotate profits towards altcoins.
At press time, BTC price gains remain subdued at 0.04%, while top altcoins like Ethereum and Solana have each secured solid gains on the day.
Chart of the Day: BTC stalls at Institutional demand dips
Investors rotate funds from BTC markets towards altcoins with higher short-term growth potential as market sentiment improves. The rotation trend also appears among institutional investors. On Thursday, Bitcoin ETFs recorded another $117 million in inflows. Farside data shows this represents the lowest single-day inflows in the last 14 days of trading.
- Ethereum (ETH) hits $2,490, up 6% in 24 Hours
Ethereum led the large-cap altcoin rally with a 6% daily gain and a staggering 25.6% rise over the past week. Backed by strong inflows into Lido Staked Ether (STETH) and increased DeFi activity, ETH is rapidly closing in on a $300 billion market cap. Its liquid staking derivatives, STETH and WSTETH, mirrored its performance, up around 12% in the past 24 hours.
- Solana (SOL) climbs to $176.15, gaining 19.6% this week
Solana continued its strong upward trajectory, adding 4.7% in the past day and 19.6% over the week. With daily on-chain activity surging and memecoins like Fartcoin and Moo Deng driving retail speculation, SOL remains one of the most active Layer-1 ecosystems. Its 24-hour volume of $9.45 billion signals growing market demand.
- Dogecoin (DOGE) rallies to $0.2145, up 7.7% in 24 hours
Dogecoin rejoined the altcoin spotlight with a 7.7% jump on Friday and 19.91% in weekly gains. The meme coin’s resurgence has been tied to renewed speculative interest and broader retail-driven momentum. Its $3.05 billion in daily trading volume signals a sharp uptick in demand, outperforming major altcoins like Cardano and Tron.
With BTC dominance slightly retracing, capital rotation into altcoins appears underway. Ethereum and its staking derivatives (STETH, WSTETH, WEETH) are surging, while riskier assets like DOGE and SHIB also post strong double-digit weekly returns.
Notably, Pepe (PEPE) emerged as the top weekly performer among the top ten-ranked memecoins, soaring 40.4% over the past seven days.
If the current risk-on sentiment continues, the altcoin market could outpace Bitcoin in near-term performance.
Metaplanet raises $21 million through zero-interest bonds to fund Bitcoin purchases
Metaplanet has issued its 14th series of ordinary bonds, securing $21.25 million in funding through a private allocation to EVO FUND. The zero-interest bonds are scheduled for redemption in November 2025, aligning with the company’s previously disclosed plans regarding financial strategy and stock acquisition rights.
According to the official statement, the proceeds will be used to purchase Bitcoin and to secure sufficient capital for bond redemption at maturity. This move reinforces Metaplanet’s ongoing strategy of integrating digital assets into its financial reserves.
German authorities seize $38 million in crypto from eXch exchange ahead of shutdown
German prosecutors have confiscated €34 million ($38.2 million) worth of crypto assets from the anonymous swapping platform eXch, one day before its closure. The seizure, announced by the Frankfurt Prosecutor General’s Office, included Bitcoin, Ether, Litecoin, and Dash, along with 8 terabytes of data and the platform’s server infrastructure in Germany.
Authorities allege that eXch operated as a criminal trading platform since 2014, facilitating anonymous transactions without anti-money laundering or KYC measures. Investigators say the platform processed around $1.9 billion in crypto, including funds linked to the North Korean hacker group Lazarus and the $1.4 billion Bybit theft. Prosecutors suspect the operators of commercial money laundering and criminal platform operations.
Conclusion
The market is showing some strength and ease due to the negotiations between the USA and China. We are looking forward to seeing the results of these negotiations and the market’s reaction to them.
