Gold Continues Declining After Reaching Record Highs
The gold ( XAU/USD ) price fell by 1.51% on Thursday, even though the recent data showed that the U.S. economy contracted in Q1. Meanwhile, the Personal Consumption Expenditures ( PCE ) Price Index remained flat in March.
Gold hit a two-week low of around $3,224 as the U.S. dollar strengthened, particularly due to signals of a possible easing in trade relations between the U.S. and China. Still, gold remains in focus for investors as a safe-haven asset amid ongoing concerns about the global economic slowdown and financial market instability.
XAU/USD rose by 0.44% during the Asian and early European trading sessions, rebounding from the $3,231 support level. Today, traders should focus on the nonfarm payroll report at 12:30 p.m. UTC. Higher-than-expected data may deepen bearish momentum in precious metals, while lower figures may support gold.
Euro Remains Resilient
On Thursday, the euro ( EUR/USD ) lost 0.34% against the US dollar (USD).
The European Central Bank (ECB) signalled potential further rate cuts . The regulator suggested a reduction towards 1.5% by the end of 2025 due to subdued growth and inflationary pressures. Additionally, new U.S. tariffs, including a 25% duty on cars, steel, and aluminium, pose challenges for eurozone exports, potentially dampening future economic growth.
"The dollar was hit so badly in the immediate aftermath of the tariffs, so now, in the broad picture, there’s a normalisation in the market", said Alvin Tan, an independent currency analyst based in Singapore. "The market is keeping one eye on the economic situation, but the other eye is looking for positive developments in China".
EUR/USD rose slightly during the Asian and early European trading sessions. Today, traders should focus on two reports: the eurozone’s Inflation Rate at 9:00 a.m. UTC and the U.S. nonfarm payroll at 12:30 p.m. UTC. The data may affect interest rate expectations and investor sentiment, increasing volatility in the Forex market, including EUR/USD. Higher-than-expected results will likely drag EUR/USD towards 1.12000. Otherwise, the pair will likely rise towards 1.14000.
Bitcoin Is Hitting Highs Again
Strong institutional inflows and supportive regulatory actions are largely driving the recent surge in Bitcoin (BTC) price. The launch of several spot Bitcoin exchange-traded funds (ETFs) catalysed broader institutional adoption, pushing total assets under management in these products beyond $250 billion.
Meanwhile, MicroStrategy (NASDAQ: MSTR )—now operating under the name Strategy—reported its fifth consecutive quarterly loss, primarily due to a $5.91 billion unrealised loss on its Bitcoin holdings. Nevertheless, the firm remains committed to its Bitcoin strategy, announcing a $21 billion equity raise to finance further purchases. ’A key change under fair value accounting is that our Bitcoin holdings are now marked only on the final day of each quarter, not continuously’, noted CFO Andrew Kang during the earnings call.
BTC/USD declined slightly during the Asian and early European trading sessions. Today, the market awaits the U.S. nonfarm payroll data at 12:30 p.m. UTC. Analysts forecast that 228,000 jobs were added in April. A higher-than-expected figure may trigger a bearish correction in Bitcoin, while softer data may support the bullish trend in BTC/USD.