Gold Pulls Back on Inflation Data as Bitcoin Rallies Above $80,000
Global markets were mixed last week as gold approached $4,700 and Bitcoin hovered around $80,000. US equities recovered at the end of the week, supported by strong Nvidia earnings and renewed optimism around AI spending.
Nvidia's beat on earnings and revenue forecast sent its shares sharply higher, reviving confidence in the broader AI trade. The company became the main catalyst for equities, with its gains helping lift the Nasdaq and S&P 500, although the rally remained relatively concentrated in technology stocks.
Gold had another strong run, climbing to a 15-week high of around $4,697 before correcting toward the $4,580-$4,600 area. The precious metal's rally was initially supported by a weaker US dollar and lower Treasury yields. However, hot PCE inflation data and renewed expectations for a Fed rate hike put pressure on gold later in the week.
Bitcoin broke above $80,000, extending its recent rally as institutional ETF inflows, lower Treasury yields, and renewed demand for scarce assets boosted sentiment. Several factors supported the move, including the Treasury's bond-buyback program, which pushed long-term yields lower and contributed to a weaker dollar and debasement narrative.