Gold prices rose on Friday as the dollar tumbled against most major rivals following new tariffs threats by US President Donald Trump.

Trump complained that dealing with the EU is proving very difficult, and recommended imposing 50% tariffs on the EU starting June 1

The new moves come in a time when trade tensions diminished somewhat after a brutal cycle of fear and concerns in April that almost pushed S&P 500 into bearish territory, before Trump paused most reciprocal tariffs.

Investors were returning to the “Buy America” mindset after the US made trade deals with China and the UK with hopes of even more deals to come, but recent measures by Trump damaged such expectations.

Before Friday’s losses, the main indices were already starting to fall due to concerns about higher US treasury yields, with the S&P 500 falling 2% this week, and Dow Jones losing 1.9%, while NASDAQ gave up 1.5% so far since Monday.

Earlier on Thursday, the House of Representatives passed Trump’s massive tax reform bill, and sent it to the Senate, with concerns growing about the massive cost of the plan to the debt burden. 

Otherwise, the dollar index fell 0.9% as of 20:04 GMT to 99.07, with a session-high at 99.9, and a low at 99.05.

On trading, gold spot prices rose 2.1% as of 20:05 GMT to $3365.2 an ounce, with the precious metal marking a 5.5% weekly profit.

US stock indices fell on Friday amid renewed concerns about a vicious global trade war.

Apple’s stock price tumbled over 2% after Trump threatened 25% tariffs on any iPhones not made in the US, representing the first such focused threat on a single company.

Trump also complained that dealing with the EU is proving very difficult, and recommended imposing 50% tariffs on the EU starting June 1

The new moves come in a time when trade tensions diminished somewhat after a brutal cycle of fear and concerns in April that almost pushed S&P 500 into bearish territory, before Trump paused most reciprocal tariffs.

Investors were returning to the “Buy America” mindset after the US made trade deals with China and the UK with hopes of even more deals to come, but recent measures by Trump damaged such expectations.

Before Friday’s losses, the main indices were already starting to fall due to concerns about higher US treasury yields, with the S&P 500 falling 2% this week, and Dow Jones losing 1.9%, while NASDAQ gave up 1.5% so far since Monday.

Earlier on Thursday, the House of Representatives passed Trump’s massive tax reform bill, and sent it to the Senate, with concerns growing about the massive cost of the plan to the debt burden. 

On trading, Dow Jones fell 0.9% as of 14:42 GMT to 41,474 points, while S&P 500 shed 1%, or 61 points to 5780 points, as NASDAQ added 1.3%, or 237 points to 18,670 points.

Palladium prices fell on Friday even as the dollar lost ground against most major rivals, with the metal falling under pressure due to demand concerns. 

In a partisan vote on Thursday, the House of Representatives voted in favor of Trump’s bill to cut taxes and increase military spending.

The bill, which has now moved to the Senate, is expected to increase government debt by trillions of dollars and spike the deficit, in a time of increasing concerns about tariff-related inflation.

The budget office at Congress estimates the cost of the tax bill at $4 trillion.

US 30-year treasury yields are up to 5.1%, the highest since 2023.

US 10-year note yields traded at just below 4.6%, with higher long-term yields usually pressuring the economy and impacting interest rates across economic sectors.

 Demand on minerals and commodities could suffer if the US economy falls into recession or faces risks due to higher debt levels.

Otherwise, the dollar index fell 0.6% as of 14:21 GMT to 99.4, with a session-high at 99.9, and a low at 99.1.

On trading, palladium futures due in June fell 2.7% as of 14:22 GMT to $999 an ounce.

Bitcoin dropped on Friday for the first session in four days away from recent record highs on profit-taking.

Despite the loss, bitcoin is still heading towards the seventh weekly profit in a row amid strong purchases by global corporations.

The Price

Bitcoin fell 3.9% at Bitstamp to $107,367, with a session-high at $111,816.

On Thursday, bitcoin rose 1.9% at Bitstamp, hitting a record high at $112,000.

Crypto Market Value 

The market value of cryptocurrencies fell by over $50 billion today to a total of $3.575 trillion.

Weekly Trades

Bitcoin is up over 2% so far this week on track for the seventh weekly profit in a row.

Bitcoin as a Safe Haven

Bitcoin is emerging as a haven for investors looking for alternatives to traditional US assets, which are facing severe fluctuations currently.

Concerns about the massive US fiscal deficit and lower demand on US treasury notes are bolstering shifts towards crypto assets such as bitcoin.

The markets are already on edge after Moody’s decision to cut the US credit rating by one notch.

Crypto trading platform Nexo’s co-founder Anthony Trenchef hailed a new period of optimism for bitcoin as it passed its January highs and rose over 50% from April lows.

He believes that bitcoin is entering its best historical years yet, with the $150,000 remaining a viable goal in 2025.

MicroStrategy

Through the X platform, MicroStrategy’s Chairman and co-founder Micheal Saylor announced a new round of bitcoin purchases amounting to 7390 units, raising total holdings to a new record high.

The purchase occurred between May 12 and May 18, with the company spending $764.85 million in total, averaging $103,498 per unit.

Following the acquisition, the company now holds 576,230 units, averaging $69,783 per unit with a total value of $40.21 billion.

MetaPlanet

Japan’s MetaPlanet also expanded its bitcoin holdings by 1004 units, purchased between May 12 and 18, at a value of $104.29 million, averaging $103,873 per unit.

Following the new purchase, the company’s total holdings rose to a record 7800 units at a value of $712.46 million, averaging $91,341 per unit.