Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record

Cryptocurrency

Summary:

Bitcoin is in no mood to copy gold's bull run yet, but on the horizon is a "terminal" end to the record XAU/USD winning streak, a trader predicts.

Bitcoin faces an uphill struggle as a safe haven in 2025 as gold fund inflows circle $80 billion.

Data from Bank of America (BoA) uploaded to X by trading resource The Kobeissi Letter on April 15 confirms gold’s “best streak” since 2013.

Gold beats records as Bitcoin ETFs slump

As the US trade war sees investors flee to gold, Bitcoin has lost the limelight as a hedge against macroeconomic volatility.

BoA figures show inflows to gold funds beating records, with data from Cointelegraph Markets Pro and TradingView capturing new all-time highs for XAU/USD near $3,300 per ounce on April 16.

“Gold fund net inflows have hit a record $80 BILLION year-to-date. This is 2 TIMES more than the previous high set in the full year 2020,” Kobeissi noted.

“Investors are pouring money into gold at a record pace as the market uncertainty has skyrocketed. As a result, gold prices have rallied 22% year-to-date and have outperformed every other major asset class.” Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record_1

Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record_1

Gold fund flows chart. Source: The Kobeissi Letter/X

BTC price action, by contrast, paints a very different picture. Despite the appearance of the US spot Bitcoin exchange-traded funds (ETFs) and growing global integration, BTC/USD reached five-month lows earlier in April.

Data from onchain analytics platform Glassnode calculates that the ETFs’ combined assets under management fell from $106 billion at the start of the year to $92 billion this week.

“Gold prices have also hit 52 all-time highs over the last year, posting the best streak in 12 years,” Kobeissi concluded.

“Gold is the global safe haven.” Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record_2

US spot Bitcoin ETF balances. Source: Glassnode

Gold “terminal top” meets Bitcoin bulls

Despite its repeated new records, market commentators already see gold’s unprecedented upside coming to an end.

Addressing the topic on X this week, veteran trader Peter Brandt called a “blow-off top” on XAU/USD.

“Gold has now entered its blow-off stage,” he summarized.

“Such rapid advancement will come to a terminal top, but attempting to pick a high can be very expensive. Blow off tops can extend well beyond a bear's ability to meet margin calls.” Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record_3

Bitcoin Trader Sees Gold 'Blow-Off Top' as XAU Nears New $3.3K Record_3

XAU/USD 1-day chart. Source: Peter Brandt/X

A gold comedown may well leave room for Bitcoin to catch up, per a popular theory that says that BTC/USD copies gold trends with a delay of several months.

“Nobody really knows why that happens,” Professional Capital Management founder and CEO Anthony Pompliano told CNBC on April 15.

Pompliano suggested that traditional financial entities were either unauthorized or simply “not used” to the idea of Bitcoin as protection against macro uncertainty.

“What we do see though is that when gold runs, about 100 days later or so, Bitcoin not only catches up; it usually runs much harder, and so you get that higher volatility,” he said.

Source: Cointelegraph

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Michelle

Forex

Economic

The Bank of Canada released the following statement on Wednesday:

"The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

"The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally. Instead, the April Monetary Policy Report (MPR) presents two scenarios that explore different paths for US trade policy. In the first scenario, uncertainty is high but tariffs are limited in scope. Canadian growth weakens temporarily and inflation remains around the 2% target. In the second scenario, a protracted trade war causes Canada’s economy to fall into recession this year and inflation rises temporarily above 3% next year. Many other trade policy scenarios are possible. There is also an unusual degree of uncertainty about the economic

outcomes within any scenario, since the magnitude and speed of the shift in US trade policy are unprecedented.

"Global economic growth was solid in late 2024 and inflation has been easing towards central bank targets. However, tariffs and uncertainty have weakened the outlook. In the United States,

the economy is showing signs of slowing amid rising policy uncertainty and rapidly deteriorating sentiment, while inflation expectations have risen. In the euro area, growth has been modest in early 2025, with continued weakness in the manufacturing sector. China’s economy was strong at the end of 2024 but more recent data shows it slowing modestly.

"Financial markets have been roiled by serial tariff announcements, postponements and continued threats of escalation. This extreme market volatility is adding to uncertainty. Oil prices have declined substantially since January, mainly reflecting weaker prospects for global growth.

Canada’s exchange rate has recently appreciated as a result of broad US dollar weakness.

"In Canada, the economy is slowing as tariff announcements and uncertainty pull down consumer and business confidence. Consumption, residential investment and business spending all look to have weakened in the first quarter. Trade tensions are also disrupting recovery in the labour market. Employment declined in March and businesses are reporting plans to slow their hiring. Wage growth continues to show signs of moderation.

"Inflation was 2.3% in March, lower than in February but still higher than 1.8% at the time of the January MPR. The higher inflation in the last couple of months reflects some rebound in goods price inflation and the end of the temporary suspension of the GST/HST. Starting in April, CPI inflation will be pulled down for one year by the removal of the consumer carbon tax. Lower global oil prices will also dampen inflation in the near term. However, we expect tariffs and supply chain disruptions to push up some prices. How much upward pressure this puts on inflation will depend on the evolution of tariffs and how quickly businesses pass on higher costs to consumers. Short-term inflation expectations have moved up, as businesses and consumers anticipate higher costs from trade conflict and supply disruptions. Longer term inflation expectations are little changed.

"Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher

costs. Our focus will be on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. This means we will support economic growth while

ensuring that inflation remains well controlled.

"Governing Council will proceed carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer

prices; and how inflation expectations evolve.

"Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war. What it can and must do is maintain price stability for Canadians."

Source: Yahoo Finance

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FastBull Events

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_1

April 16, 2025, Dubai – The highly anticipated FastBull Finance Summit Dubai 2025 grandly opened at the Coca-Cola Arena in Dubai. The atmosphere was electric as financial elites from around the globe gathered to witness the commencement of this prestigious financial event.

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_2

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_3

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_4

The highlight of the first day was undoubtedly the special guest lecture held in the afternoon. Renowned American investor Mr. Jim Rogers offered his unique insights, providing an in-depth analysis of the current global landscape and its impact on the market. He also shared his outlook on the Middle Eastern financial market, and his profound wisdom earned rounds of applause from the audience.

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_5

The individual speaker sessions in the afternoon were equally captivating. James Bentley shared the secrets to rising above trading failures and becoming a top trader, while Rakeel Raja Zahoor presented practical methods for creating a million-dollar trading plan, packed with valuable takeaways.

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_6

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_7

The two roundtable forums held in the morning and afternoon respectively also focused on market hotspots, sparking in-depth thinking and lively discussions among the attendees. The forum on "Smart Trading Trends: AI & Quant Innovations" explored the future of technology empowering finance. Meanwhile, the forum on "Diversified Market Opportunities: Forex & Crypto Assets" pointed out new directions for investors.

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_8

A Gathering of Giants, a Clash of Minds – FastBull Finance Summit Dubai 2025 Kicks Off with a Bang!_9

The first day of the summit was rich in content and full of practical insights, laying a solid foundation for the exciting agenda to come.

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Glendon

Forex

Economic

U.S. retail sales surged in March as households boosted purchases of motor vehicles ahead of tariffs, though concerns about the economic outlook are hurting discretionary spending.

Retail sales increased 1.4% last month after an unrevised 0.2% rise in February, the Commerce Department's Census Bureau said on Wednesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, accelerating 1.3%.

President Donald Trump's 25% global car and truck tariffs came into effect in early April, with industry analysts and manufacturers warning that the duties would significantly raise motor vehicle prices.

Motor vehicle manufacturers reported a big jump in auto sales in March, attributed by some to a rush by buyers "to try and beat the tariffs."

Consumers are also stocking up on other imported goods. Bank credit and debit card data suggest spending continues to be driven by high-income households with low-income consumers struggling. There is less discretionary spending, which is mostly on services, the main engine of the economy.

With the stock market selling off as the import duties stoke fears of inflation and stagnation in economic growth or even a recession, there are concerns high-income households could start retrenching if the values of their investment portfolios continue to shrink.

Consumer sentiment is near three-year lows, with 12-month inflation expectations the highest since 1981. Mass layoffs of public workers as part of an unprecedented campaign by the Trump administration to downsize the federal government are also weighing on morale and could be a potential drag on spending.

"Bank of America card data indicates that 'nice-to-have' discretionary services spending eased in March, while more inflation-driven spending on necessities such as insurance, rent and utilities continues to rise," Bank of America Institute said in a note.

Retail sales excluding automobiles, gasoline, building materials and food services rose 0.4% in March after an upwardly revised 1.3% advance in February. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Economists had forecast core retail sales rising 0.6% after a previously reported 1.0% jump in February.

Despite the strength in core retail sales in the last two months, economists expect consumer spending slowed considerably in the first quarter because of sluggish outlays on services.

Consumer spending, which accounts for more than two-thirds of the economy, grew at a 4.0% annualized rate in the October-December quarter.

Economic growth estimates for the first quarter are mostly below a 0.5% rate. The Atlanta Federal Reserve is currently forecasting GDP contracting at a 0.3% pace after adjusting for imports and exports of gold. The economy grew at a 2.4% pace in the fourth quarter.

Source: Yahoo Finance

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Warren Takunda

Economic

British inflation slowed to its weakest in three months in March and other measures watched by the Bank of England cooled too, but higher bills and employer costs will pressure prices soon against the backdrop of U.S. President Donald Trump's trade war.

Inflation slowed to an annual rate of 2.6% in March from 2.8% in February, below expectations of 2.7% in a BoE forecast and a Reuters poll of economists.

A price drop for computer games and falling fuel prices helped bring down the headline rate although the prices of clothes rose strongly after a surprise fall in February, the Office for National Statistics said.

"This is very much the calm before the storm," former BoE interest rate-setter Michael Saunders said, pointing to April's increases in gas, electricity and water prices, alongside higher taxes on employers, which could push inflation to 3%.

"And we'll start to see the effects on the economy of Storm Donald with the Trump trade wars," Saunders told BBC radio.

He said inflation was now likely to peak below the BoE's most recent forecast of 3.7% in the third quarter this year, but the cost would be a hit to economic growth.

The BoE - which has an inflation target of 2% - said in February it expected inflation to leap to 3.6% in April as regulated tariffs for household utility bills go up.

Since those forecasts were made, Trump's decision to impose sweeping trade tariffs have raised the prospect of a slowdown in the global economy.

Martin Sartorius, principal economist at the Confederation of British Industry, said the higher US tariffs could put both upward and downward pressures on inflation in the UK, but the BoE was likely to cut interest rates next month.

The line chart shows inflation, core inflation and services inflation in Britain from January 2023 to March 2025.

Financial markets put a roughly 86% chance on the BoE cutting its benchmark Bank Rate by a quarter of a percentage point at its next monetary policy announcement on May 8, up from about 80% from before the inflation data.

"Looking ahead, we expect them to continue their 'gradual and careful' approach to reducing borrowing costs amid an uncertain economic environment," Sartorius said.

BoE Deputy Governors Clare Lombardelli and Sarah Breeden and Monetary Policy Committee member Megan Greene have all said it is too early to judge the inflation implications resulting from Trump's moves.

Trade experts have said China is likely to send cheaper exports to Europe after being effectively barred from the U.S. market due to high tariffs on the Asian powerhouse.

Sterling fell by about a fifth of a cent against the US dollar after the figures were published.

Inflation in the euro zone also fell in March to 2.2% and to 2.4% in the U.S.

KEY MEASURES COOL

Wednesday's data showed inflation for UK services - something the BoE considers to be a good guide of price pressures in the economy - slowed to 4.7% from 5.0% in February. The Reuters poll had pointed to a 4.8% increase.

Core headline inflation, which excludes energy, food and tobacco prices, also eased a touch.

However, despite a slowdown in price growth from levels above 11% in 2022, inflation in Britain continues to be a concern for consumers.

Inflation expectations among the public and business have risen, adding to unease among BoE policymakers who are keeping a close eye on other gauges of price pressures in the economy as they assess when to reduce borrowing costs.

Source: Reuters

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Warren Takunda

Economic

The Pound to Euro exchange rate lost altitude in early trade on Wednesday asthe US Dollar unravelled afresh in an apparent response to the latest in the US-China trade conflict, and a proposal in Washington for a tax on foreign holdings of American assets to be imposed on some jurisdictions.

Adding slightly to GBP/EUR’s decline early in the London session was a 20 basis point fall in the rate of inflation, to 2.6%, and a larger as well as more meaningful 30 basis point decline in the rate of services sector inflation, to 4.7%, which is the measure most closely watched by the Bank of England.

However, the decline dates back to President Donald Trump’s statement late on Tuesday suggesting he may force countries to choose between trade relations with the US and trade relations with China, threatening a possible bifurcation of the global economy and financial markets.

“Moreover, underlining that what starts with tariffs and trade spreads to capital and other areas, Congressional Republicans are proposing legislation that would penalise holders of US financial assets for anyone from a country that imposes a “discriminatory” tax,” says Michael Every, a global strategist at Rabobank.

Above: GBP/EUR at 15-minute intervals with ICE US Dollar Index. Click for closer inspection.

In addition, there is reportedly a new proposal in Washington for a 5% annual levy, rising by 5% per year up to a maximum of 20%, on US assets held by countries who maintain digital services taxes, which would apply mainly to the European Union and Canada, according to Every. However, both the UK and Switzerland are among the others who also have similar taxes, perhaps due to Brussels' own penchant for pushing the extraterritorial adoption of its own rules and regulations.

To say the least, the proposals risk prompting a renewed or continued Exodus from Dollar assets similar to that seen in the week to Passover on Friday. The Dollar already fell against all G20 currencies overnight except for the Chinese Renminbi and Indonesian Rupiah even as global equity markets also declined broadly.

“In keeping with the Passover theme, it’s also important to stress we have four kinds of analysts’ takes on what’s going via the questions they ask about it: the Wise (“Why is this happening?”); the Wicked (“What has this got to do with me/my view?”); the Simple (“What?”); and Ones Who Don’t Know How to Ask,” Every says.

“Which analyst are you? To the answer: this market is different from all other markets because in all other markets we assume there is one global economy within which all goods, services, and capital flow, with one single global reserve currency, the US dollar. Now, we might be witnessing an Exodus from it,” he adds. Pound to Euro Rate in Descent as Global Economy, Markets Head for Armageddon_2

Pound to Euro Rate in Descent as Global Economy, Markets Head for Armageddon_2

Above: GBP/EUR at daily intervals with ICE US Dollar Index. Click for closer inspection.

The Dollar unravelled in a broad-based rout last week that took place amid simultaneous declines in all major US equity markets accompanied by periodic bouts of weakness in the Treasury market, and amid what appeared to be frequent interventions from Beijing in support of the Chinese Renminbi.

The asset sales seen over that period clearly and strongly favoured currencies of current account surplus jurisdiction such as the Euro Area, Switzerland and Japan, among others, who are some of the largest foreign holders of US stocks and bonds.

However, without irony, Beijing currently appears to be one of the few things, if not the only thing, keeping the Dollar from falling into a bottomless pit or abyss, as it seeks to maintain a “basically stable” trade-weighted Renminbi, which is positively-correlated with the Dollar.

“The shift in correlations between the dollar, US yields and US equities is startling in recent weeks, with the USD falling despite higher US yields and lower US equities. This may be temporary, but it has happened very rarely in the past so does bear watching,” says Dominic Bunning, head of FX strategy at Nomura.

Above: US Dollar performance relative to G10 currencies for the week to Friday, 11 April.

Source: Poundsterlinglive

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Warren Takunda

Economic

US President Donald Trump has signed an executive order to initiate an investigation into critical minerals, potentially leading to additional tariffs on industrial resources. The move follows recent probes into chip and pharmaceutical imports, signalling a further broadening of the global trade war.

The investigation, under Section 232 of the Trade Expansion Act of 1962, aims to “determine the effects on national security of imports of processed critical minerals and their derivative products,” according to the official document. “Critical minerals, including rare earth elements, in the form of processed minerals are essential raw materials and critical production inputs required for economic and national security.” The same law was previously used by Trump to impose 25% tariffs on steel and aluminium, as well as to launch a probe into copper imports.

Last month, the president signed an executive order to boost domestic production of critical minerals by invoking the Defence Production Act, providing support such as financing and loans to the sector. The measure is widely seen as targeting China, which dominates the global supply chain.

Trump’s strategic approach to leverage US power in the trade war with China

According to the White House, the US relies on imports of 15 critical minerals, 70% of which originate from China. Last Friday, Beijing announced export restrictions on a wide range of critical minerals, such as germanium, gallium, antimony, and magnets, in response to Trump’s sharp tariff hikes.

The US has only one rare earth mine and no domestic smelters, leaving it heavily reliant on China for natural resources, including rare earths and critical minerals—vital components in electric devices, battery-powered vehicles, aircraft, and defence equipment. A TD Economics report reveals that China dominates the global production of more than half of the 50 critical minerals identified by the US government in 2022. It also maintains a near-monopoly in refining, processing 90% of global rare earth elements. To strengthen its hand in the trade war, the US will need to diversify sourcing of these industrial materials.

“Processed critical minerals and their derivative products face significant global supply chain vulnerabilities and market distortions due to reliance on a small number of foreign suppliers,” Tuesday’s investigation document states, “The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defence readiness, price stability, and economic prosperity and resilience.”

In February, Trump demanded $500 billion (€442 billion) worth of Ukraine’s rare earth and critical minerals as part of peace talks, a move also seen as a strategic effort to enhance the US’s position against China.

Market responses

Australia’s major mining stocks fell during Wednesday’s Asian session, with shares of BHP falling 1.2%, Rio Tinto sliding 2.3%, and Phibara Minerals dropping 2.9% as of 5:52 am CEST. In commodities, iron ore (CFR China) futures on the SGX declined 0.35%, while copper futures fell 0.91%.

The downturn in the resource sector may also be linked to reports that Nvidia is facing new US export restrictions to China, which could cost the tech giant billions of dollars. These fresh regulations are expected to dampen demand for industrial resources such as copper and certain critical minerals used in chip manufacturing. Combined with Trump’s latest probe, the news has contributed to broader market weakness.

European markets may soon feel the ripple effects of the intensifying global trade war, with stock futures pointing to a lower open across major indices.