On Wednesday, the EUR/USD pair experienced a slight drop, falling by around one-tenth of one percent. This minor movement occurred as global markets found themselves in a lull between significant data releases. Amidst this quiet, gold prices continued their upward trajectory for the third consecutive day, trading near a peak not seen since November 1, with prices soaring above $2,750.
The rise in gold prices is largely attributed to investor uncertainty surrounding US President Donald Trump's trade policies. This uncertainty has driven haven flows towards gold, seen as a stable investment during times of economic unpredictability. Meanwhile, privacy-focused cryptocurrencies, including Monero, ZCash, DASH, MimbleWimbleCoin, and Decred, experienced slight gains, indicating potential for a rally in the coming weeks.
In a significant development, a US court overruled the Office of Foreign Assets Control's sanction on Tornado Cash. Additionally, Ross Ulbricht, the founder of the infamous Silk Road marketplace, was granted a presidential pardon. These events have added to the complexity of the current market situation.
President Trump's decision to halt his trade war rhetoric and threats has left markets with limited catalysts to focus on. The shift in tone from the White House has contributed to a positive risk sentiment and increased bets on a Federal Reserve rate cut, which has provided support for the USD.
In contrast, the AUD/USD pair extended its consolidative price movement below the 0.6300 mark. The market remains cautious as participants digest the implications of what is being referred to as "Trump 2.0," particularly regarding his tariff plans.