US-China Trade Deal Eases Tensions, Gold Prices Decline While Bitcoin Remains Stable

On May 12, 2025, the United States and China announced an agreement to lower import tariffs for 90 days, marking a significant step in easing trade tensions

Jakarta, Pintu News – The United States and China have reached an agreement to lower import tariffs for 90 days, a move that is expected to ease trade tensions between the world’s two largest economies. The announcement on May 12, 2025 has sparked mixed reactions in global financial markets, leading to price changes in commodities like gold and digital assets such as Bitcoin (BTC).

Global financial markets have been closely watching the progress of trade negotiations between the US and China, which have been a major source of volatility in recent months. As the two countries reached an agreement to lower tariffs on May 12, 2025, the move is anticipated to ease trade tensions and promote stability in the global economy.

The development has affected different commodities and digital assets in varying ways.

Gold prices have decreased by more than 3%, shifting from $3,323 per ounce to around $3,215 per ounce, following the announcement of the trade deal between the US and China. This decline can be attributed to reduced demand for safe haven assets such as gold, along with increased market optimism for global economic stability. The strengthening of the US dollar is also putting pressure on gold prices, as it makes the precious metal more expensive for holders of other currencies.

“We could see further downside pressure on gold in the short term, especially if US economic data continues to show steady growth and contained inflation,” said an analyst from Bank of America. “However, any further declines in gold prices may be limited by lingering uncertainties regarding long-term trade negotiations and global monetary policy.”

Also Read: Bitcoin Price Approaches Rp1.74 Billion: Trend Analysis and Challenges May 2025

On the other hand, Bitcoin (BTC) has shown price stability by remaining at around $102,389, despite reaching an intraday high of $105,525. This stability indicates that investors still recognize Bitcoin as an attractive alternative asset, despite changing geopolitical and global economic risks.

Moreover, Bitcoin’s performance is supported by increasing institutional adoption and investor interest in digital assets. However, analysts caution that Bitcoin faces strong resistance around the $109,000 level, which is the previous record high.

“For Bitcoin to continue making substantial gains, we may need additional catalysts, such as positive developments in cryptocurrency regulation or increased adoption of blockchain technology globally,” said an analyst from Deutsche Bank.

The trade deal between the US and China has affected different financial markets in unique ways. While gold prices have decreased due to reduced demand for safe haven assets, Bitcoin has shown resilience and stability amid changing market sentiment. As investors navigate this evolving landscape, they are advised to continue monitoring the progress of trade negotiations and other global economic indicators in making investment decisions.

Also Read: 3 Altcoins That Catch Analysts’ Attention Amid Positive Market Sentiment: Significant Growth!

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