Gold heads for biggest weekly loss in 6 months as Trump’s Gulf tour rattles markets
By: bitcoin ethereum news|2025/05/16 19:00:12
0
Share
Gold prices fell hard on Friday, dropping more than 1% by mid-morning, and closing in on their worst weekly decline since November 2024, according to data from Reuters. Investors began pulling out after a temporary US-China tariff truce combined with a stronger dollar to hammer demand for the metal. As of press time, spot gold had fallen to $3,210.19 per ounce, while US futures also lost ground, slipping to $3,213.60. Trump’s tour through Saudi Arabia and the UAE this week added pressure to the broader market environment. His meetings with Gulf leaders on AI and energy left investors wondering whether more abrupt trade shifts were around the corner. Just weeks ago, the White House was threatening higher tariffs on Chinese imports, but by Monday, Washington had backed off, agreeing with Beijing to pause the tit-for-tat duties. Markets took that as a cue to move money out of safe havens like gold, which is often held during times of tension. Trade deal cools gold as dollar holds strong The market reaction was immediate. As talks between the US and China turned temporarily friendly, optimism flooded into riskier assets. But this was bad news for gold. Nitesh Shah, commodities strategist at WisdomTree, said on Friday: “We’ve gone through a week where there have been optimistic signals in terms of trade negotiations and we have seen the dollar appreciate on the course, which is weighing on gold prices.” The dollar index (DXY) stayed quiet Friday, but was heading for its fourth straight weekly gain, limiting gold’s appeal to foreign buyers. The rise in the greenback hurt demand because it makes gold more expensive in other currencies. That’s a key reason why the metal has now lost more than 3% over the week, ending a month-long rally that saw it reach an all-time high of $3,500.05 per ounce in April. That record peak had been driven by central bank buying, fears of a tariff war, and growing demand from investors who saw inflation as a real threat. But this week, things changed. US economic numbers came in weaker than expected, suggesting growth might be slowing and inflation might be easing. That gave rise to fresh bets that the Federal Reserve would soon cut rates. Normally, that would help gold. It doesn’t pay interest, so it performs better when rates are low. Tim Waterer, chief market analyst at KCM Trade, said: “Gold price dips continue to attract buyers, which shows that the precious metal remains a favoured asset, with the global growth and inflation outlooks still looking rather murky.” Outside of gold, other precious metals got hit, too. Silver dropped 1.2% to $32.28, platinum dipped 0.4% to $985.30, and palladium fell 1% to $958.56. Investors didn’t just pull out of gold—they were trimming exposure across the entire metals complex. Fed bets grow as yields and dollar trade push back The bond market added more weight to the pressure on gold. US Treasury yields dropped further, building on earlier declines from the start of the week. The 10-year note slid another 5 basis points to 4.41%, while the 2-year fell 3.5 bps to 3.94%. Markets are now pricing in 59 basis points worth of Fed rate cuts by December, up from 49 bps earlier in the week. The chance of a 25 basis point cut by July is now at 40%. Francesco Pesole, rate strategist at ING, said: “The dollar short-term rates relationship has loosened in the past two months, but the market’s bearish US dollar tendency means further dovish repricing could prove to be the catalyst for fresh dollar short building.” In the currency market, the euro rose 0.2% to $1.1209, but was still down 0.34% for the week. That follows a strong March, when Germany rolled out a fresh stimulus package, and a big move in April, when Trump’s tariffs triggered a sudden dump of US assets after “Liberation Day.” The yen also made gains as the dollar slipped 0.45%, ending its three-week climb against Japan’s currency. That came after weak GDP numbers from Japan and new comments from a Bank of Japan official suggesting policy may remain loose. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now Source: https://www.cryptopolitan.com/gold-biggest-weekly-loss-in-6-months-trump/
You may also like

Once you're over 25, you're already too old to be playing with meme coins.
Pump.fun, the world's largest 24-hour online esports platform

Four New Frontlines Post Ceasefire | Rewire News Daily Brief
Rate Cut Window Pushed Beyond Year End

Holmez accepts Bitcoin for toll payment, how much can Iran earn?
When you stretch the numbers and do the math, the answer turns out to be unexpectedly small

When No One on the Team Wants to Sell: The Valuation Game at Anthropic Enters the “Seller Disappearance” Stage
Anthropic's stock, priced at $350 billion, some want to buy but can't buy enough, some can sell but unwilling to sell.

Anthropic's new product, powerful enough to make the AI Agent Infrastructure team unemployed?
All-inclusive infrastructure, pay-as-you-go pricing, a cloud-based AI agent working for you 24/7.

Trump Admin's $950 Million Bet on Oil Price Plunge Before Ceasefire Turned Crude Market into Insider Trading Heaven
19:45 GMT is a tricky timepoint

Why Did Trump Take the US into War with Iran?
Here is the inside story of how he made this key decision

From Threat to Ceasefire: How Did the U.S. Lose Its Dominance?
A war that cannot be won must be negotiated.

How long can the Ethereum ecosystem survive after the launch of Mythos?
AI dimensionality reduction strikes Ethereum, Mythos instantly breaches cross-contract vulnerabilities rendering traditional audits ineffective, and $68 billion in locked funds faces a life-and-death test of "defensive vacuum."

Morning News | Yi Lihua establishes AI fund OpenX Labs; Pharos Network completes $44 million Series A financing; Iran demands that Hormuz tankers pay Bitcoin as tolls
Overview of Important Market Events on April 8th

Ray Dalio's new article: The world is entering a war cycle
We are in a world war that will not end in the short term.

IOSG: When Fintech Meets Crypto Native: The Next Decade of Digital Finance
Header: FinTech is increasingly integrating stablecoins and blockchain infrastructure into core products, reshaping the global payment landscape.

They knew in advance that Trump would tweet about a ceasefire, entered with $20k, and exited with $400k.
They turned the war into a compounding investment

The biggest bottleneck in DeFi development
Today, the biggest threat facing DeFi is not just market conditions or liquidity; in terms of security, it also requires more than just preventing code vulnerabilities, because spies may be lurking nearby.

CZ Memoir Released: Reveals a Large Amount of Industry Insider Information, Prompting Intense Rebuttal from Xu Mingxing
As one of the most influential figures in the cryptocurrency industry today, Zhao Changpeng has personally experienced the difficult development journey of Binance and the cryptocurrency industry in its early years, which brings many little-known insider stories and details to this book, adding plen...

a16z: After securities are on the blockchain, why will intermediary institutions be replaced by code?
Writing transactions and settlements into code, the securities market begins to break free from intermediaries.

XRP Tokyo Is Here: What We Learn and What’s Next for XRP Price
Key Takeaways: Ripple’s 2025 XRP Tokyo event highlights a projected $33 trillion on-chain stablecoin volume by 2026. Significant…

Solana’s Future: Navigating the $285M Hack, Rug Pulls, and Milei Libra Scandal
Key Takeaways: Multiple Crises: Solana faces a $285 million hack, allegations of rug pulls, and the Milei Libra…
Once you're over 25, you're already too old to be playing with meme coins.
Pump.fun, the world's largest 24-hour online esports platform
Four New Frontlines Post Ceasefire | Rewire News Daily Brief
Rate Cut Window Pushed Beyond Year End
Holmez accepts Bitcoin for toll payment, how much can Iran earn?
When you stretch the numbers and do the math, the answer turns out to be unexpectedly small
When No One on the Team Wants to Sell: The Valuation Game at Anthropic Enters the “Seller Disappearance” Stage
Anthropic's stock, priced at $350 billion, some want to buy but can't buy enough, some can sell but unwilling to sell.
Anthropic's new product, powerful enough to make the AI Agent Infrastructure team unemployed?
All-inclusive infrastructure, pay-as-you-go pricing, a cloud-based AI agent working for you 24/7.
Trump Admin's $950 Million Bet on Oil Price Plunge Before Ceasefire Turned Crude Market into Insider Trading Heaven
19:45 GMT is a tricky timepoint
