Gold prices held steady near record highs as the week drew to a close, driven by a combination of factors including a weakening US Dollar and easing tariff concerns. The precious metal's strength was mirrored in multiple markets, with notable movements in currency pairs and digital assets.
The US Dollar encountered significant downward pressure, leading to a sell-off that rippled through the currency markets. The alleviation of concerns surrounding former President Trump's tariff narrative contributed to this weakness, providing a boost to other currencies. In particular, the British pound gained additional strength from favorable readings in the UK's Manufacturing and Services PMIs. This momentum enabled the GBP/USD pair to test recent two-week highs, nearing the 1.2450 mark.
Meanwhile, the Euro maintained its bullish trajectory against the Dollar, with the EUR/USD pair trading near multi-week highs around the 1.0500 barrier. The market's optimism was further supported by the release of preliminary US Manufacturing and Services PMIs for the current month, which investors closely monitored for economic cues.
In the cryptocurrency arena, Dogelon Mars (ELON) extended its rally, surging over 18% this week. The digital currency's continued ascent on Friday underscored the broader market's dynamic shifts and investor appetite for alternative assets.
Market participants are now setting their sights on potential interest rate adjustments in both the Eurozone and the United States. Speculation is mounting over a series of anticipated rate cuts, with expectations that the US Federal Reserve may reduce interest rates by 25 basis points on two occasions. Similarly, the European Central Bank (ECB) is projected to implement four 25 basis point cuts, highlighting a strategic shift in monetary policy amid evolving economic conditions.