empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
04.04.2025 09:09 AM
The Growth of the Gold Price Has Stopped. What Is the Reason? (There Is a Possibility of a Local Corrective Pullback in #SPX and Bitcoin)
Open trading account Open demo account

The global market crash triggered by the announcement of sweeping tariffs personally introduced by the U.S. President continues into Asian trading sessions. While the decline has slowed, there is still no sign of this trend weakening. Interestingly, gold prices have been behaving unusually and inconsistently in recent months. What's the reason?

In most countries, the atmosphere in markets and political circles can be best described as one of shock and awe. The onset of a widespread trade war between the U.S. and nearly the entire world has underscored America's true standing in the global hierarchy, which, despite internal divisions, remains pivotal. All global markets—stocks, currencies, cryptocurrencies, and commodities—reacted negatively to the so-called "day of liberation," resulting in a significant plunge. The U.S. dollar also fell sharply in response.

But in such a situation, something should have received support. So where did the money flow—even temporarily?

The primary beneficiary of the current situation has been government bonds, which saw a sharp increase in prices amid rising demand for safe-haven assets, resulting in falling yields. Investors rushed into the debt market, hoping to preserve some of their capital. U.S. Treasury yields plunged below 4%. German Bunds and British, French, and other developed nations' bonds followed the same trend. Demand for government bonds from economically developed countries surged, pushing yields down. Bond yields—particularly government ones—are calculated inversely: as prices rise, yields fall, and vice versa.

What about gold? Where does it stand, and why hasn't it emerged as a traditional safe-haven asset?

Indeed, gold is traded in U.S. dollars. The dollar has plummeted, so gold should have logically surged—but it hasn't. Traditionally, interest in gold as a safe haven grows in market chaos and geopolitical tension. But not now. Here's how I would explain it. First, gold prices are already in the stratosphere—true, though not the main reason, in my view.

The second reason is the sharp increase in gold reserves stored in COMEX warehouses across the U.S. in recent months, driven by fears that rising tariffs could disrupt supply. However, after the announcement that precious metals would not be subject to President Trump's "reciprocal" tariffs, demand for gold has been limited. That said, a significant drop in gold prices is unlikely. Most likely, the metal will consolidate near its recently reached highs. Fears of the inflationary impact of tariffs globally, combined with central bank purchases and strong demand for gold-backed ETFs, have helped contain the downside.

So, what can we expect from gold price dynamics?

I believe not much. A large-scale sell-off is unlikely. On April 5—tomorrow—we expect the "second act" of the drama, with Trump potentially announcing a new wave of tariffs. Since their scope is still unclear, today's negative trend in the markets may subside. We may even witness a short-term rebound in financial assets as positions are partially closed.

Today's U.S. jobs report will be released, but markets likely won't react enthusiastically, just as they haven't in recent weeks. The main focus remains on tariffs, the threat of global recession, and other issues triggered by the U.S. under President Donald Trump.

This image is no longer relevant

This image is no longer relevant

Daily Forecast:

#SPX

The CFD contract for the S&P 500 futures has paused its decline in anticipation of new tariff announcements expected from Donald Trump tomorrow. In this wave, the contract might experience an upward correction as some short positions are closed. If the price moves above 5407.00, it may trigger limited growth. A potential entry point could be the 5416.62 level.

Bitcoin

The cryptocurrency remains within a broad sideways range. A pause in market turmoil following the recent crash could lead to a local rise toward the 84,773.73 level. A potential entry point could be the 83,646.26 level.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Analytical News
US Market News Digest for May 14 IBM stock continues to climb, supported by technical chart signals pointing to a potential move towards the $265.90 level. Investors are showing interest in the company's stock, backed by strong
Ekaterina Kiseleva
12:40 2025-05-14 +02:00
1225
Fundamental analysis
AUD/JPY. Analysis and Forecast The current technical and fundamental setup for the AUD/JPY pair points to short-term pressure from the Japanese yen. However, fundamental factors favoring the Australian dollar help maintain the pair's upside
Irina Yanina
11:28 2025-05-14 +02:00
1495
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

The current technical and fundamental setup for the AUD/JPY pair points to short-term pressure from the Japanese yen. However, fundamental factors favoring the Australian dollar help maintain the pair's upside
Irina Yanina 11:28 2025-05-14 UTC+2

USD/JPY. Analysis and Forecast

At the moment, the Japanese yen is showing positive momentum against the U.S. dollar for the second consecutive day.The key factor supporting the Japanese currency has been hawkish comments from
Irina Yanina 11:28 2025-05-14 UTC+2

The Market Is Changing the Rules of the Game

Don't go against the crowd. According to Goldman Sachs and the Federal Reserve, individual investors held $35 trillion worth of U.S. stocks at the end of 2024, equivalent to 38%
Marek Petkovich 09:32 2025-05-14 UTC+2

What to Pay Attention to on May 14? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Wednesday. The only item of note is the second estimate of Germany's Business Activity Index for April. Second estimates typically
Paolo Greco 06:11 2025-05-14 UTC+2

GBP/USD Overview – May 14: Only the Trade Deal Matters

On Tuesday, the GBP/USD currency pair also ended what could only be called disgrace — its decline. On Monday, the U.S. dollar strengthened quite well following a successful first round
Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD Overview – May 14: The Music Didn't Last Long

The EUR/USD currency pair experienced upward movement for most of Tuesday. One gets used to good news quickly, and the market expected further strengthening of the U.S. dollar. We anticipated
Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD. And Then They Woke Up: Market Euphoria Over the U.S.-China Trade Truce Fades

The currency market's initial euphoria following the announcement of a temporary trade truce between the U.S. and China has now faded. The early optimism has given way to the sobering
Irina Manzenko 01:23 2025-05-14 UTC+2

Inflation Does the Dollar a Bearish Disservice

One of the few indicators the market occasionally pays attention to is U.S. inflation. After Donald Trump introduced trade tariffs, economists immediately started discussing rising inflation. This conclusion is logical
Chin Zhao 01:14 2025-05-14 UTC+2

The Euro Prepares for Retaliation

Man proposes, God disposes. After the White House imposed strict tariffs on America's Independence Day, there was much discussion about rising inflation and a slowing U.S. economy. However, instead
Marek Petkovich 00:18 2025-05-14 UTC+2

USD/CHF. Analysis and Forecast

The USD/CHF pair is pulling back from the monthly high reached yesterday. This retreat is driven by a technical correction following a strong upward move. The U.S. Dollar Index, which
Irina Yanina 18:30 2025-05-13 UTC+2

Top analytics

Relevance up to 20:00 2025-05-14 UTC--4
GBP/USD Overview – May 14: Only the Trade Deal Matters
03:52 2025-05-14
Fundamental analysis
Relevance up to 04:00 2025-05-15 UTC--4
EUR/USD Analysis on May 14, 2025
11:20 2025-05-14
Technical analysis
Relevance up to 22:00 2025-05-14 UTC--4
GBP/USD Forecast for May 14, 2025
05:03 2025-05-14
Technical analysis
Relevance up to 22:00 2025-05-14 UTC--4
EUR/USD Forecast for May 14, 2025
05:03 2025-05-14
Technical analysis
Relevance up to 20:00 2025-05-14 UTC--4
EUR/USD Overview – May 14: The Music Didn't Last Long
03:52 2025-05-14
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.