- Cryptocurrency
The crypto market, while still slowed down, is seemingly stabilising after going through a rough April. Stepping into May, the markets are showing signs of consolidation. Bitcoin reflected a minor price dip of 0.17 percent to trade at $94,920.
Bitcoin showed strong resilience at lower levels, fueled by continuing Bitcoin ETF inflows and increasing whale accumulation. Notably, K33 Research reports that Bitcoin’s weekly volatility has dropped to a 563-day low, reinforcing its growing maturity as a global financial asset. BTC continues to face resistance above the $95,500 zone while support has moved back to $93,000. Ether showed a minor price hike of 0.31 percent trading at $1,810.
The cryptocurrency market experienced a downturn, influenced by unfavorable US economic indicators. Following reports of a negative first-quarter GDP and weaker-than-anticipated employment data signaling stagflation concerns, Bitcoin briefly surpassed $95,000 but retracted, advising investors to practice caution in making financial decisions.
Global MarketsIndices were unsettled yesterday, reflecting heightened concerns after data revealed a contraction in US gross domestic product (GDP) for the first quarter. The GDP report showed a 0.3% annualized decline, marking the first negative reading since early 2022 and a sharp reversal from the previous quarter’s 2.4% growth. This downturn was primarily attributed to a surge in imports as businesses rushed to stockpile goods ahead of anticipated tariffs tied to President Trump’s trade policies, which distorted economic data and weighed on investor sentiment.
On the positive side, consumer spending and pending home sales showed resilience, keeping investor hopes alive. Additionally, robust after-hours earnings from tech giants like Microsoft and Meta buoyed market futures, offering relief and stability as investors look ahead to further corporate results. Today, all eyes will be on the manufacturing PMI data release today.
On the chart, SPX is trading above the 9day SMA and increased by 0.45% to $5,620 and can see resistance near $5,665 and support near $5,571.GoldGold prices declined for the third time this week by Wednesday’s close, as renewed optimism about easing tensions between the US and China boosted risk appetite. Additionally, the Dollar climbed to a two-week high, further dampening demand for the safe-haven metal.
However, expectations of more aggressive monetary easing by the Federal Reserve, fueled by an unexpected contraction in US GDP and signs of cooling inflation, could weigh on the USD. This outlook discourages traders from making new bearish bets on non-yielding gold, helping to limit deeper losses.
The US economy contracted at an annualised rate of 0.3% during the first quarter of 2025 after growing at a solid pace of 2.4% in the previous quarter. The data, in turn, revives concerns about a looming US recession. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, rose 2.6% vs. 3% in February, pointing to easing inflationary pressures.
Investors are looking forward to the manufacturing PMI data release today.
On the technical front, gold is trading below the 9 SMA on the daily chart. Immediate support is seen at the psychological level of $3,200, followed by the $3,160 level. Resistance is seen at the $3,260 level, which was the previous key support on the 4-hour chart.
Gold prices in the UAE are as follows –
24 Carat – AED 389.00
22 Carat – AED 360.25
21 Carat – AED 345.25
18 Carat – AED 296.00
