According to The Kobeissi Letter, gold prices have surged for the second consecutive day, increasing by another 1.5% and approaching $3,400 per ounce (source: The Kobeissi Letter, May 6, 2025). This momentum signals strong bullish sentiment in the precious metals market, attracting traders seeking safe-haven assets during market volatility. Technical indicators now show overbought conditions, suggesting potential short-term resistance near the $3,400 level. Traders are closely monitoring volume and macroeconomic drivers, as further moves above $3,400 could trigger breakout trading strategies or profit-taking (source: The Kobeissi Letter).

According to Michaël van de Poppe (@CryptoMichNL), the current rally in gold reflects a persistent risk-off mentality among traders as the FED meeting approaches on Wednesday. He highlights that the upward trend in Services PMI is a positive macroeconomic indicator. For crypto traders, the ongoing build-up in Bitcoin suggests accumulation, and van de Poppe anticipates a potential upward move in Ethereum prices following the FED's decision (Source: Twitter/@CryptoMichNL, May 5, 2025). Traders should monitor volatility around the FED meeting, as both traditional and crypto markets may react sharply to policy updates.

According to Michaël van de Poppe, altcoins are facing difficulties gaining momentum as the market anticipates potential tariff announcements by Trump on April 2nd. Concurrently, gold continues to rally, suggesting a shift towards safer assets. This situation could significantly impact trading strategies as traders weigh geopolitical risks. Source: Michaël van de Poppe.

According to The Kobeissi Letter, high-yield credit spreads have been widening from historically low levels, indicating increased risk perception in the credit markets. Concurrently, both gold and US Treasury bonds have seen a rally over the past two weeks, which is unusual as these assets typically move inversely with interest rates. This trend suggests a shift in market sentiment, possibly due to rising interest rates heading into 2025. Traders should monitor these developments closely as they can impact investment strategies in both credit and bond markets.