The US Dollar experienced subdued price action on Friday as risk sentiment stabilized across the markets. Bitcoin, a leading cryptocurrency, was observed hovering around $104,000, marking a significant bounce from its 50-day Exponential Moving Average of approximately $98,800 earlier in the week. Meanwhile, gold prices touched an all-time peak of $2,800 during the early European trading session. The precious metal appears poised to extend its upward trend, a movement bolstered by geopolitical tensions and trade tariff threats from US President Donald Trump.
Bitcoin's rebound from its recent moving average indicates a potential upward trajectory, capturing the attention of investors seeking refuge from fluctuating currency markets. The stabilization in risk sentiment comes amidst broader market uncertainties and shifting economic policies. The European Central Bank (ECB) played a pivotal role this week by cutting interest rates by 25 basis points. This decision aligns with expectations and suggests that the ECB may continue its current rate cut cycle to stimulate economic growth.
In foreign exchange markets, the GBP/USD pair traded within a narrow range above 1.2400 during Friday's European session. This stability reflects cautious optimism among traders as they navigate the evolving economic landscape influenced by currency fluctuations and central bank policies.
Gold's recent peak underscores its role as a safe-haven asset amid global tensions and economic uncertainty. The demand for gold has been further fueled by President Trump's trade policies and geopolitical challenges, prompting investors to seek stability in bullion as a hedge against market volatility.
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