Gold Rebounds on Thursday
The gold price () rose by 0.91% on Thursday, driven by renewed market uncertainty. The rebound followed a US federal appeals court decision to temporarily uphold President Trump’s expansive tariff policy.
This ruling came just one day after the US Court of International Trade had blocked trade tariffs, citing procedural issues in their implementation. The legal back-and-forth surrounding trade policy reignited safe-haven demand for bullion amid potential trade disruptions and rising geopolitical tension.
Comments from central bank officials added to the cautious sentiment. San Francisco Federal Reserve (Fed) President Mary Daly reaffirmed the Fed’s March projection of two potential rate cuts in 2025. However, she stressed that maintaining the current policy rate remains prudent for the near term.
Daly emphasised the importance of anchoring inflation expectations, signalling the Fed’s commitment to returning inflation sustainably to its 2% target before easing further. The combination of legal tensions and cautious central bank guidance supported gold’s appeal as a hedge against both economic and policy uncertainty.
XAU/USD fell below $3,310 during Asian and early European trading sessions, positioning the precious metal for a weekly decline exceeding 1%. Investor sentiment turned risk-averse ahead of the upcoming US Personal Consumption Expenditures () Price Index report today at 12:30 p.m. UTC. The Fed will closely watch the PCE data as it could offer important insights into the future path of US .
Shrinking US Economy Lifts Euro
The euro () increased by 0.69% on Thursday after official data confirmed the US economy shrank in Q1—the first contraction in three years.
The economic slowdown poses new challenges for the Federal Reserve (Fed), which must balance supporting growth with persistent inflation pressures. While a downturn typically bolsters the case for easing monetary policy, uncertainty around inflationary dynamics—especially in the context of trade policy—may temper expectations for an imminent rate cut.
Adding to market volatility, the (USD) initially rallied on Thursday following a federal court ruling that deemed President Donald Trump’s reciprocal tariffs unlawful. However, those gains reversed after an appeals court reinstated the tariffs, reigniting uncertainty over trade policy and inflation.
EUR/USD started to decline during Asian and early European trading sessions. Today, traders are closely watching the release of the Personal Consumption Expenditures (PCE) Price Index data at 12:30 p.m. UTC, the Fed’s preferred inflation measure. The report could offer clues as to whether reinstated tariffs are feeding through to consumer prices, potentially shaping the central bank’s next move.
BTC Retreats From All-Time High of $111,980, but Remains Resilient
(BTC) fell by 1.7% on Thursday.
Bitcoin’s fundamental outlook remains robust, underpinned by growing institutional engagement and increasing strategic adoption by sovereign entities. Notably, open futures positions have surpassed $15 billion. This signals increasing participation from professional and institutional investors, viewing Bitcoin as a portfolio diversifier and a hedge against macroeconomic risks.
Further validating Bitcoin as a recognised financial asset, the US government created a Strategic Bitcoin Reserve—currently valued at approximately $20.4 billion—which marks a significant endorsement of its long-term store-of-value proposition and geopolitical relevance.
Despite these structural tailwinds, near-term market dynamics may introduce heightened volatility. The upcoming expiration of approximately $10 billion in Bitcoin options poses a potential inflection point, as large open interest around key strike prices can amplify price swings.
While such derivative-driven movements may cause short-term dislocations, they don’t detract from the strengthening macro fundamentals. As institutional infrastructure grows and sovereign interest deepens, Bitcoin continues to solidify its position as a core asset within the evolving global financial ecosystem.
BTC/USD rose slightly during Asian and early European trading sessions. Today, traders should focus on two US reports: the Personal Consumption Expenditures (PCE) Price Index at 12:30 p.m. UTC and the University of Michigan (UoM) Consumer Sentiment data at 2:00 p.m. UTC. The report may spur volatility and shed light on potential shifts in US monetary policy. Key levels to watch are support at $104,600 and resistance at $106,800.