Gold backs off record highs as dollar strengthens
Gold prices lost ground on Tuesday as the dollar rallied against most major rivals, with the precious metal losing its haven appeal as concerns about the trade war calmed down.
The White House said nearly 18 countries already presented proposals for trade deals with the US.
White House Spokeswoman Caroline Levett said that work is being done to reach a trade deal with China despite there not being direct talks between Presidents Trump and Jinping.
US Treasury Secretary Scott Bessent said the trade war with China is currently unsustainable, expecting the situation to settle down soon.
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.
Otherwise, the dollar index rose 0.6% as of 18:33 GMT to 98.8, with a session-high at 98.8, and a low at 98.01.
On trading, gold spot prices fell 0.7% as of 18:34 GMT to $3401.4 an ounce.
Wall Street recovers partially with Dow Jones rallying 800 points
US stock indices rose on Tuesday amid attempts to recoup some of the hefty losses sustained yesterday as US President Trump threatened to blow away the independence of the Federal Reserve.
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.
On trading, Dow Jones rallied 2.1%, or 800 points to 38,970 points, while S&P 500 rallied 2.1%, or 107 points to 5264 points, as NASDAQ jumped 2.3%, or 362 points to 16,232 points.
IMF cuts its global growth forecasts for this year
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
IMF’s growth forecasts
The International Monetary Fund cut US GDP growth forecast for 2025 from 2.7% to 1.8%.
It UK GDP growth forecast to 1.1% in 2025 from 1.6%, and to 1.6% in 2026 from 1.5% in previous forecasts.
The IMF expects global inflation to hit 4.3% in 2025, and 3.6% in 2026.
It raised UK inflation forecasts to 3.1% in 2025 from 2.4%, and expects inflation to reach 2.2% next year.
The IMF expects the Bank of Japan to raise interest rates at a slower pace than previously expected due to US tariffs.
Bitcoin hits seven-week high on new corporate purchases
Bitcoin rose on Tuesday and expanded the gains for the fourth straight session, hitting a seven-week high and approaching $90,000 once more.
It comes amid improving sentiment after major corporations announced new bitcoin purchases, while the dollar weakened due to President Trump’s attacks against Fed Chair Powell.
The Price
Bitcoin rose 1.55% at Bitstamp today to $88,874, the highest since March 7, with a session-low at $87,094.
On Monday, bitcoin rallied 2.75% as the dollar collapsed.
Crypto Market Value
The market value of cryptocurrencies rose by $40 billion on Tuesday to a total of $2.865 trillion.
MicroStrategy
Through the X Platform, MicroStrategy’s co-founder and chairman Micheal Saylor announced another round of bitcoin purchases today at 6556 units, raising the company’s total holdings to a new record high.
The purchase occurred between April 14 and 20, with the company spending $555.85 million, averaging $84,785 per unit.
Following this new acquisition, the company now holds 538,200 units with an average price of $67,828 per unit, totaling $36.50 billion in value.
MetaPlanet
Similarly, Japan’s MetaPlanet increased its bitcoin holdings by 330 units worth $28.25 million, averaging $86,605 per unit.
Following the round of purchases, MetaPlanet’s holdings rose to a record 4855 units, worth $405.90 million
The Dollar
The dollar index fell 0.3% on Tuesday on track for the third straight session, and is about to hit three-year lows at 97.92 against a basket of major rivals.
Trump escalated his attacks against Fed Chair Jerome Powell and called him “a big loser” and “Mr Too late”, and demanded the Fed once more to cut interest rates.
The White House said it’s considering ways to fire Fed Chair Jerome Powell after Trump expressed urgent desires to terminate him due to disagreements about monetary policies.
Such news continues to rattle the markets, which depend heavily on the independence of the Federal Reserve from any political interference as a pivotal mainstay in the global financial system.