Gold Price Surges, Bitcoin Drops, USD Rises: What’s Behind the Global Financial Shake-Up?

📈 Market Overview (Updated as of May 20, 2025 

The global financial market experienced notable fluctuations in the past 24 hours. As investors await the release of the latest FOMC meeting minutes, gold prices rebounded, Bitcoin faced selling pressure, and the US Dollar continued its upward momentum — reflecting stronger interest rate expectations in the United States.

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🟡 Gold Prices Rise Amid Economic and Geopolitical Concerns

• Spot gold on the Kitco exchange is currently at $2,438/oz, up nearly $12 from the previous session.

• Analysts at Bloomberg attribute the rise to safe-haven demand driven by escalating tensions in the Middle East and weak economic data from China.

• In Asian markets (Singapore, Tokyo), central bank and ETF buying activity surged.

📸 Image caption: Gold price chart – alt/title: Gold price trend on May 20, 2025, source: Kitco

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🪙 Bitcoin Slips Below $66K as Investors Lock in Profits

• Bitcoin (BTC) is trading around $65,720, down nearly 3% over the past 24 hours.

• The dip followed a strong rally earlier in May, as investors opted to take profits amid hawkish signals from the Federal Reserve.

• Other major altcoins like Ethereum, Solana, and BNB also saw declines of 2–4%.

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💵 USD Strengthens on Expectations Fed Will Keep Rates High

• The Dollar Index (DXY) jumped to 104.8, a two-week high.

• The EUR/USD pair is now at 1.0820, slightly down from the previous session.

• In New York markets, capital continues to flow into the USD as a safe-haven asset amid global uncertainty and stubborn US inflation.

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📊 Analysis: What’s Driving the Volatility & What to Watch Next?

Key Drivers:

• Rising geopolitical tensions in the Middle East

• Sticky US core inflation, delaying possible Fed rate cuts

• Profit-taking pressure after a sustained crypto rally

Investment Strategy Insights:

• Gold: Long-term investors may consider gradual accumulation if prices hold above $2,400.

• Bitcoin: Watch the $65K support level and institutional trading behavior.

• USD: Remains a defensive play in uncertain markets.