Palladium prices fell on Friday even as the dollar lost ground against most major rivals, with the metal falling under pressure due to demand concerns. 

In a partisan vote on Thursday, the House of Representatives voted in favor of Trump’s bill to cut taxes and increase military spending.

The bill, which has now moved to the Senate, is expected to increase government debt by trillions of dollars and spike the deficit, in a time of increasing concerns about tariff-related inflation.

The budget office at Congress estimates the cost of the tax bill at $4 trillion.

US 30-year treasury yields are up to 5.1%, the highest since 2023.

US 10-year note yields traded at just below 4.6%, with higher long-term yields usually pressuring the economy and impacting interest rates across economic sectors.

 Demand on minerals and commodities could suffer if the US economy falls into recession or faces risks due to higher debt levels.

Otherwise, the dollar index fell 0.6% as of 14:21 GMT to 99.4, with a session-high at 99.9, and a low at 99.1.

On trading, palladium futures due in June fell 2.7% as of 14:22 GMT to $999 an ounce.

Bitcoin dropped on Friday for the first session in four days away from recent record highs on profit-taking.

Despite the loss, bitcoin is still heading towards the seventh weekly profit in a row amid strong purchases by global corporations.

The Price

Bitcoin fell 3.9% at Bitstamp to $107,367, with a session-high at $111,816.

On Thursday, bitcoin rose 1.9% at Bitstamp, hitting a record high at $112,000.

Crypto Market Value 

The market value of cryptocurrencies fell by over $50 billion today to a total of $3.575 trillion.

Weekly Trades

Bitcoin is up over 2% so far this week on track for the seventh weekly profit in a row.

Bitcoin as a Safe Haven

Bitcoin is emerging as a haven for investors looking for alternatives to traditional US assets, which are facing severe fluctuations currently.

Concerns about the massive US fiscal deficit and lower demand on US treasury notes are bolstering shifts towards crypto assets such as bitcoin.

The markets are already on edge after Moody’s decision to cut the US credit rating by one notch.

Crypto trading platform Nexo’s co-founder Anthony Trenchef hailed a new period of optimism for bitcoin as it passed its January highs and rose over 50% from April lows.

He believes that bitcoin is entering its best historical years yet, with the $150,000 remaining a viable goal in 2025.

MicroStrategy

Through the X platform, MicroStrategy’s Chairman and co-founder Micheal Saylor announced a new round of bitcoin purchases amounting to 7390 units, raising total holdings to a new record high.

The purchase occurred between May 12 and May 18, with the company spending $764.85 million in total, averaging $103,498 per unit.

Following the acquisition, the company now holds 576,230 units, averaging $69,783 per unit with a total value of $40.21 billion.

MetaPlanet

Japan’s MetaPlanet also expanded its bitcoin holdings by 1004 units, purchased between May 12 and 18, at a value of $104.29 million, averaging $103,873 per unit.

Following the new purchase, the company’s total holdings rose to a record 7800 units at a value of $712.46 million, averaging $91,341 per unit.

The US dollar fell on Friday in European trade against a basket of major rivals, resuming losses and hitting a three-week low, on track for the heftiest weekly loss in six weeks under extreme selling pressures due to concerns about the US financial stability. 

Now investors await important and crucial remarks by several Fed officials, looking for new clues on the odds of multiple rate cuts this year.

The Index

The dollar index fell 0.75% today to 99.14, the lowest since April 29, with a session-high at 99.94.

On Thursday, the index rose 0.2%, the first profit in four sessions after Trump’s tax bill passed the House of Representatives successfully. 

Weekly Trades

The index is down 1.85% so far this week against a basket of major rivals, heading for the first weekly loss in five weeks, and the heftiest since early April.

The greenback is pressured by increasing concerns about the US financial stability, nudging investors towards safer havens.

It comes after Moody’s decision to cut the US credit rating last week, the investor focus turned to the massive US debt reaching $36 trillion, and to Trump’s new tax reform bill, which would add trillions to this burden.

Trump described the legislation as a “big beautiful bill”, and has already passed the House of Representatives and headed to the Senate where it’s expected to face months of discussions and changes.

US Rates

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

Gold prices rose in European trade on Friday, resuming gains after a short hiatus yesterday and heading for a weekly profit as the dollar dipped against a basket of major rivals.

It comes after the US credit rating downgrade, which renewed concerns about the US financial stability and raised the challenges facing US policymakers.

The Price

Gold prices rose 1.2% today to $3334 an ounce, with a session-low at $3287.

On Thursday, gold lost 0.6%, the first loss in four days on profit-taking away from a two-week high at $3345 an ounce.

Weekly Trades

This week, gold prices are up 4% so far, on track for the second weekly profit in three weeks, and the largest such profit in six.

US Dollar

The US dollar index fell  0.5% on Friday on track for a two-week trough at 99.34 against a basket of major rivals. 

The greenback is pressured by increasing concerns about the US financial stability, nudging investors towards safer havens.

It comes after Moody’s decision to cut the US credit rating last week, the investor focus turned to the massive US debt reaching $36 trillion, and to Trump’s new tax reform bill, which would add trillions to this burden.

Trump described the legislation as a “big beautiful bill”, and has already passed the House of Representatives and headed to the Senate where it’s expected to face months of discussions and changes.

US Rates

US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.

Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.

The odds of a 0.25%% Fed rate cut in July stood at 37%.

Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.

SPDR

Gold holdings at the SPDR Gold Trust rose 4.01 tons yesterday to a total of 923.89 tons, the highest in a week.