Gold prices showed resilience near their record highs at the week's end, bolstered by a weakened US Dollar and a more flexible stance on trade tariffs. The recent developments surrounding the US-China trade narrative under former President Donald Trump significantly contributed to this trend. Additionally, easing tensions with China lent further support to the upward trajectory of gold prices.
In currency markets, the British pound made notable strides, approaching two-week highs around the 1.2450 mark against the US Dollar. This strength was largely driven by promising data from the UK's advanced Manufacturing and Services Purchasing Managers' Indexes (PMIs). Meanwhile, the EUR/USD pair maintained its bullish momentum on Friday, trading near multi-week highs close to the 1.0500 barrier. The pair's performance was influenced by mixed results from the preliminary US Manufacturing and Services PMIs for the current month.
The cryptocurrency market also experienced notable movements, with Dogelon Mars (ELON) continuing its rally on Friday. ELON's price surged over 18% throughout the week, drawing significant attention from investors and market participants.
Interest rate expectations played a crucial role in shaping market dynamics. Participants in the capital markets anticipate a series of interest rate cuts in both the Eurozone and the United States this year. The US Federal Reserve is expected to implement two interest rate cuts of 25 basis points each, while the European Central Bank (ECB) is projected to execute four cuts of the same magnitude.
It is important to note that neither the author nor FXStreet are registered investment advisors. Consequently, this article should not be considered as investment advice.