Nvidia has witnessed one of the most stunning success stories in recent years.. But before we get into the details, let’s have a quick history lesson.

Nvidia was founded in 1993, and gained quick fame by producing GPUs for video games, which helped particularly with 3D display.

However, with recent sudden improvement in AI technology, the company’s GPUs found incredible applications, with fourth quarter earnings in 2023 surging by 265%. 

Just a decade ago, the company was valued at $10 billion, before surging to $50 billion in 2016, and as of 2024, it reached a valuation of $2 trillion, becoming the third largest publicly traded company in the world. 

In many cases, some people tend to put financial markets and especially the tech sector into a separate metal bucket away from the usual investments into value stores, such as gold and silver.

However in many cases, such precious metals are highly connected to tech. 

Gold for example is a major component in Nvidia products, alongside tin, tungsten, and others. 

Gold has proven once again its excellent industrial applications, especially with conduction and its chemical properties, which have proven useful in chips and internal computers keys and wires, despite the high cost. 

And as competition surges for AI-related GPUs, their prices are expected to surge and the direct link with gold prices will decline, which means companies will be able to utilize gold in GPUs with a freer hand. 

That’s why some inventive investors are betting on the combination of gold and AI, and it has to be rather ironic that one of the oldest and most traditional value storage items such as gold is now directly linked with the most cutting edge industry. 

US stock indices fell on Thursday following disappointing US data earlier today.

US GDP growth came in at 1.6% in the first quarter of 2024, down from 3.4% in the fourth quarter of 2023, while analysts expected a 2.4% growth rate. 

US personal spending, a major driver of growth, rose by 2.5% in the last quarter, down from 3% in the previous reading. 

Other data showed US unemployment claims fell by 5 thousand to 207 thousand in the week ending April 20, while analysts expected 215 thousand. 

On trading, Dow Jones fell 1.2%, or 477 points to 37,984, while S&P 500 fell 0.9%, or 44 points to 5,027, as NASDAQ gave up 1.3%, or 202 points to 15,510. 

Bitcoin fell on Thursday, extending losses for the third straight session and moving away from recent two-week highs on active profit-taking, following a sudden drop in investments into bitcoin exchange funds. 

For the first time since its launch on January 11, the BlackRock Bitcoin fund failed to attract investments, leading to a sudden drop in cash flow. 

The Price

Bitcoin fell 1.4% to $63.356 at Bitstamp, with a session-high at $64,708. 

Bitcoin tumbled 3.25% on Wednesday on active profit-taking off $67,241. 

Crypto Market Value

The market value of cryptocurrencies fell by $45 billion today to $2.455 trillion as both Bitcoin and Ethereum log in losses.

Sudden Drop in Cash Flow 

According to initial data, new cash flow to bitcoin funds traded in US exchanges tumbled this month. 

The bitcoin exchange fund managed by BlackRock lost its momentum on Wednesday, and failed to attract investments for the first time since its launch. 

It has already managed to attract over $15 billion so far, however all flow was focused in the first quarter, in turn hurting spot bitcoin prices. 

Dollar fell in European trade on Thursday against a basket of major rivals, resuming losses and plumbing two-week lows as demand slowed down and risk appetite rebounded.

Now markets await important US growth data later today for the first quarter of the year, which will help determine the likely path ahead for US interest rates.

The Price 

The dollar index fell 0.25% today to 105.57, the lowest in two weeks, with a session-high at 105.84.

The index closed Wednesday 0.15% higher as the dollar scaled 34 year highs against yen.

Alternative Investments 

Dollar demand declined as risk appetite rebounded, especially as geopolitical tensions between Iran and Israel faded. 

Now investors await important earnings results from major corporations and banks to gauge the health of the economy.

US Rates

The markets are pricing in a 13% probability of a Fed interest rate cut in June, and a 45% probability of such a cut in July. 

US Growth Data

Later today, US GDP growth data are estimated at 2.5% in the first quarter, down from 3.4% in the fourth quarter of 2023.

US unemployment claims are expected up to 214 thousand in the week ending April 20, from 212 thousand in the previous reading.