Weekly Market Summary: Gold, Bitcoin, and USD Trends (May 17–23, 2025)

 

📈 Gold, Bitcoin Surge While USD Weakens: What Happened This Week?

In the trading week from May 17 to May 23, 2025, global financial markets witnessed notable shifts across key assets such as gold, Bitcoin, and the US Dollar Index (DXY).

🟡 Gold: Safe-Haven Demand Pushes Prices Higher

• Opening Price (May 17): $3,278/oz

• Closing Price (May 23): $3,357/oz

• Weekly Gain: +$79/oz

Weekly price change bar chart for Gold

Gold posted a strong weekly performance as geopolitical concerns in Eastern Europe and rising inflation expectations in the US led investors to seek safe-haven assets. The softening of the USD further supported gold prices, making it more attractive for international buyers.

🟠 Bitcoin: Regains Momentum, Approaches $111K

• Opening Price (May 17): $108,130

• Closing Price (May 23): $110,616

• Weekly Gain: +$2,486

Weekly price change bar chart for Bitcoin

Bitcoin showed resilience amid regulatory updates from the US SEC and positive institutional inflows. Major tech players hinted at expanding blockchain integrations, contributing to investor optimism and price gains.

🟢 USD Index (DXY): Retreats on Fed Pause Expectations

• Opening Index: 104.7

• Closing Index: 103.8

• Weekly Loss: -0.9 points

The US Dollar Index declined amid growing consensus that the Federal Reserve may pause its rate hikes. Weak US PMI data and dovish comments from Fed members weighed on the dollar's strength throughout the week.

🔍 Analysis: What Drove the Market?

• Monetary Policy Signals: Dovish tones from central banks, especially the Fed, pushed investors toward risk assets and inflation hedges.

• Inflation Outlook: US inflation readings showed mild deceleration but still above target, fueling interest in gold and crypto.

• Global Tensions: Ongoing military escalations in Eastern Europe increased volatility, benefiting safe-haven assets like gold.

• Crypto Regulation: Gradual clarity in US crypto policy has encouraged institutional participation in Bitcoin markets.