Gold prices fell on Thursday as the dollar rose against most major rivals while investors shunned the precious metal as a haven demand following the announcement of the US-UK trade deal.

The risk appetite rebounded strongly in the markets as trade tensions receded with the US reaching a trade agreement with Britain.

Recent US data showed unemployment claims fell by 13 thousand today to 228 thousand in the week ending May 3, while analysts expected 230 thousand.

In a step that wasn’t surprising, the Fed decided to maintain interest  rates unchanged at below 4.5%, due to ongoing economic uncertainty.

The statements asserted the FOMC continues to monitor risks closely, and believes that unemployment and higher inflation risks are on the upside.

The statement hinted that tariffs threaten higher prices and could slow growth, which opens the door to the scenario of inflationary recession.

Trump described Powell as a “fool” and insisted that energy and oil prices alongside most other products have fallen with inflation barely there, and once again demanded a rate cut.

Otherwise, the dollar index rose 1% as of 18:57 GMT to 100.6, with a session-high at 100.7, and a low at 99.6.

On trading, gold spot prices rallied 2.3% as of 18:58 GMT to $3312.5 an ounce.

US stock indices rose on Thursday after the US and the UK announced a major trade deal, and following the Federal Reserve’s policy meeting. 

The risk appetite rebounded strongly in the markets as trade tensions receded with the US reaching a trade agreement with Britain.

Recent US data showed unemployment claims fell by 13 thousand today to 228 thousand in the week ending May 3, while analysts expected 230 thousand.

In a step that wasn’t surprising, the Fed decided to maintain interest  rates unchanged at below 4.5%, due to ongoing economic uncertainty.

The statements asserted the FOMC continues to monitor risks closely, and believes that unemployment and higher inflation risks are on the upside.

The statement hinted that tariffs threaten higher prices and could slow growth, which opens the door to the scenario of inflationary recession.

Trump described Powell as a “fool” and insisted that energy and oil prices alongside most other products have fallen with inflation barely there, and once again demanded a rate cut.

On trading, Dow Jones rose 0.6% as of 15:35 GMT, or 259 points to 41,371 points, while S&P 500 added 0.6%, or 33 points to 5664 points, as NASDAQ rallied 0.7%, or 131 points to 17,868 points.

Oil prices rose over 1% on Thursday on hopes for a trade deal between China and the US, the two biggest oil consumers worldwide. 

Brent futures rose 86 cents, or 1.4% to $61.98 a barrel, while West Texas crude prices rose 97 cents, or 1.7% to $59.03 a barrel as of 11:20 GMT.

SEB analysts note that as the markets settle above $61 a barrel, it provides strong support, accompanied by optimism on tariffs as the US and China prepare to commence talks.

US Treasury Secretary Scott Bessent will meet senior Chinese officials on May 10 in Switzerland to discuss a potential end to the trade war, which would boost fuel demand. 

Conversely, OPEC+ continue to increase their oil output, heaping pressure on prices.

City Research analysts reduced their outlook  for three-month Brent price to $55 a barrel from $60, but kept long-term forecasts at $60 this year.

They believe that a US-Iran nuclear deal could push Brent towards $50 a barrel, as supplies flood the markets, but failure to reach a deal would boost prices to over $70.

The Energy Information Administration reported a drop of 2 million barrels in US crude stocks last week to 438.4 million barrels, while analysts expected a drop of 1.3 million barrels.

Gasoline stocks rose 0.2 million barrels to 225.7 million barrels, as distillate stocks fell 1.1 million barrels to 106.7 million barrels.

Bitcoin rose on Thursday as demand on high-risk assets rebounded on optimism about US trade talks with allies, while investors assess the Federal Reserve’s latest policy meeting.

On the trade front, the markets were boosted by reports about a meeting between US Treasury Secretary Scott Bessent and Chinese officials in Switzerland to discuss the tariffs and a potential trade agreement.

Bessent cautioned that this step aims at de-escalation and not reaching a full trade deal.

Trump’s Son

US President Trump’s son Eric announced that he owns a “large amount” of bitcoin, asserting his faith in the future of this cryptocurrency during his participation at the TOKEN2049 event in Dubai, describing bitcoin as “digital gold” and expecting long-term growth in value.

Even as Eric hasn’t revealed the exact sum of this investment, it shows the commitment of the Trump’s family towards cryptocurrencies, which is a notable conversion after previous criticism towards the industry.

Trump has repeatedly expressed his support for crypto assets, considering it a strategic advantage for the US over China, and signing an executive order in March to start joining seized bitcoin to the US strategic reserve. 

Trump also appointed Paul Atkins as the new SEC chief and tasked him with drawing up new regulations that support crypto innovations, in a radical departure from the previous administration’s stance.

Conflict of Interest 

Trump however has faced criticism about a potential conflict of interest, due to his company World Liberty Financial’s clear connections to the crypto industry, and especially after Trump launched his own meme coin, which triggered calls for investigations from the Senate Democrats.

The Fed

In a step that wasn’t surprising, the Fed decided to maintain interest  rates unchanged at below 4.5%, due to ongoing economic uncertainty.

The statements asserted the FOMC continues to monitor risks closely, and believes that unemployment and higher inflation risks are on the upside.

The statement hinted that tariffs threaten higher prices and could slow growth, which opens the door to the scenario of inflationary recession.

Most Fed policymakers believe the central bank is in a good position to hold off modifying policies until clear data presents itself.

Bitcoin

Bitcoin rose 2.5% on Coinmarketcap as of 13:49 GMT to $99.5 thousand.