- Cryptocurrency
Bitcoin rallied to its highest level since Donald Trump’s “Liberation Day” tariff announcements as the dollar slumped amid renewed fears over the US president’s efforts to remove Federal Reserve Chairman Jerome Powell.
The largest cryptocurrency by market value jumped about 3% to top $88,900. That erased most of the losses sustained since Trump’s April 2 reciprocal tariff announcement, which plunged global markets into turmoil.
The rebound comes as the dollar and US stock-index futures fell Monday after the president’s criticism of the Federal Reserve raised concerns over its independence. A gauge of the dollar hit its lowest point since January 2024 after the National Economic Council Director Kevin Hassett said Friday that Trump is studying whether he’s able to fire Powell.
Bitcoin’s recovery coincided with another surge in gold, which climbed to a fresh record, further highlighting investor demand for perceived safe-haven and inflation-hedging assets. USD weakness is driving the rally in crypto. However, that “thin holiday liquidity” in crypto markets “is causing the move to be exaggerated.”
- Gold
Gold rose by 1.55% today and is trading at 3,480. The metal reached an all-time high of 3,500 today.
On the fundamental front, Beijing’s comments warned other countries against signing trade agreements with Washington that harm China, emphasizing that global economies risk being drawn into a trade war between the two nations. Additionally, Trump again pressured Powell, stating, “If Powell doesn’t cut rates, the economy might slow down”. This raised doubts over the Fed’s monetary policy independence, which paired up with the bets of Fed rate cuts this year, pushed the US Dollar to its weakest point since April 2022
On the technical front, gold has been trading in a strong uptrend, with the 9- and 21-period EMAs at 3,468 and 3,442, respectively. On the hourly chart, the commodity has strong support at 3,440 and resistance at 3,555.
Gold prices in the UAE are as follows –
24 Carat – AED 420.00
22 Carat – AED 388.75
21 Carat – AED 372.75
18 Carat – AED 319.50
- Gulf Markets
U.S. Markets
In yesterday’s trading day, the S&P 500 fell by 1.8%, the Nasdaq is down 2%, and the Russell 2000 has declined by 2.2%. In early trading today, all three U.S. indices are in the green. Market sentiment has turned cautious since Trump announced the highest tariffs in over a century. Even with a 90-day pause in place, investor unease persists, evident in gold breaking above $3,500. Recently, Trump sparked speculation that he may fire Fed Chair Jerome Powell, raising fresh concerns about the Federal Reserve’s independence. This week, traders will be watching earnings from Tesla and Alphabet for clues on how companies are navigating the current market environment. Technically, the S&P 500 is trading below the 9-day SMA at $5,314 with immediate support at $5,088, while immediate resistance is at $5,337.
U.S. Dollar
The US dollar index closed more than a per cent lower on Monday, continuing to trade at three-year low levels, pressured by Donald Trump’s insistence on the removal of Federal Reserve Chairman Jerome Powell. The recent bearish momentum has caused about a 9.34% drop in the dollar index on a year-to-date basis, pressured by concerns over the Fed’s independence and politicisation of US monetary policy, especially after Trump criticised Powell on Monday, calling him “a major loser” and “Mr. Too Late”. Trump’s pressure on reducing interest rates and the chance of a potential recession has led to a selloff of dollar-denominated assets, resulting in a declining greenback. From a technical perspective, the US dollar index traded well below its 9-EMA. The index can face potential resistance near the 99.18 level, while potential support could be found near the 97.72 level.
Crude Oil
Oil slipped 2.5% yesterday after Trump warned of a potential slowdown in the U.S. economy if Chairman Powell fails to ease monetary policy soon. Trump even threatened to fire Powell – further exacerbating risk-off sentiment in the markets. Ongoing trade tensions between China and America are impacting oil, as China slashed purchases of American crude considerably. Moreover, China levied retaliatory levies of 10% to 15% of American energy products in February. In turn, the U.S. blacklisted a second Chinese refiner for importing over $1 billion worth of Iranian crude. Adding to the pressure is OPEC+’s decision to roll back output at a faster pace than expected, stoking concerns about oversupply, particularly if demand weakens further. Nevertheless, oil recovered on Tuesday with Brent trading higher by 0.34% at $66.79, with 9-SMA support at $65.85 and 21-SMA resistance at $68.32 on the day chart. WTI is up 0.41% at $62.97, with 9-SMA support at $61.80 and 21-SMA resistance at $64.74.
Gold
Gold rose by 1.55% today and is trading at 3,480. The metal reached an all-time high of 3,500 today. On the fundamental front, Beijing’s comments warned other countries against signing trade agreements with Washington that harm China, emphasizing that global economies risk being drawn into a trade war between the two nations. Additionally, Trump again pressured Powell, stating, “If Powell doesn’t cut rates, the economy might slow down”. This raised doubts over the Fed’s monetary policy independence, which paired up with the bets of Fed rate cuts this year, pushed the US Dollar to its weakest point since April 2022. On the technical front, gold has been trading in a strong uptrend, with the 9- and 21-period EMAs at 3,468 and 3,442, respectively. On the hourly chart, the commodity has strong support at 3,440 and resistance at 3,555.
