Gold Prices Plunge; Coinbase Stock Crashes After Hack and SEC Probe
Key Takeaways
- Gold prices fell, marking their worst week since November.
- Coinbase shares slumped 70% after hacking and SEC probe.
- Monica Defend is overweight gold, targeting $3380, anticipating three Fed cuts.
- Egypt increases oil, LNG purchases due to high natural gas prices.
- LME considers curbs on large positions to prevent outsized bets.
Top Stories
Gold prices fell, worst week since November.
On 2025-05-16, reports indicated that gold prices experienced a decline, positioning them for their worst week since November.
Coinbase shares slump 70% after hacking, SEC probe.
On 2025-05-16, Coinbase shares slumped over 70% in New York after facing a double whammy of a hacking and S.E.C. probe. Hackers allegedly bribed foreign employees to steal customer data and demanded $20 million in ransom, which Coinbase refused to pay, potentially causing $400 million in remediation costs.
Monica Defend: Overweight gold, $3380 target, three Fed cuts.
On 2025-05-16, Monica Defend discussed the US Dollar, Fed Cuts, and Gold, anticipating three Fed cuts this year and expressing an overweight position in gold. She cited hedging and diversification as reasons, maintaining a high target of $3380.
Egypt increases oil, LNG purchases due to gas prices.
On 2025-05-16, reports indicated that Egypt is increasing its oil purchases to power plants due to high natural gas prices. The Egyptian General Petroleum Corp. issued a tender for nearly 2 million tons of fuel oil for delivery this month and next, and is in discussions with LNG suppliers to buy liquefied natural gas through 2030 to meet summer power demand and reduce reliance on the spot market.
LME considers curbs on large positions to prevent bets.
On 2025-05-16, it was reported that the London Metal Exchange (LME) is in informal talks about imposing curbs on large positions to prevent outsized bets. The proposed limits could prevent traders from holding positions in nearby month’s contracts exceeding total inventory.
Commodity Corner
Oil prices set for weekly gains despite oversupply concerns.
On May 15 and 16, 2025, reports indicated that oil prices are set for weekly gains despite oversupply concerns, with potential for further decline due to increasing supply prospects from Iran.
UAE, Exxon Mobil expand oil production capacity.
On May 16, 2025, the United Arab Emirates and Exxon Mobil Corp. agreed to expand the nation’s oil production capacity. Abu Dhabi National Oil Co. will collaborate with Exxon to boost capacity at the offshore Upper Zakum field, which currently produces over 1 million barrels a day.
China becomes top buyer of Canadian crude via Trans Mountain.
Reported on 2025-05-16, China has become the top buyer of Canadian crude oil via the Trans Mountain pipeline due to the US trade war.
Southeast Asia LNG imports rising: Malaysia, Indonesia.
On May 16, 2025, it was reported that LNG traders are seeking to increase exports to Malaysia and Indonesia. Traditionally exporters, these Southeast Asian countries now require imports due to rising energy demands.
Bitcoin Watch
Binance, Kraken fend off social-engineering hacks, no data lost.
On 2025-05-16, it was reported that Binance and Kraken were targeted by the same type of social-engineering hack recently disclosed by Coinbase Global Inc. However, both platforms successfully defended against the attacks without any loss of customer data.
Coinbase shares up 34% on S&P 500 inclusion.
On May 16, 2025, Coinbase Global Inc.’s shares rose 34% over the last five sessions, marking the biggest weekly gain since President Donald Trump’s reelection. This surge followed the announcement that the stock would replace Discover Financial Services in the S&P 500 Index.
Global Trade Winds
US import prices up 0.1%, 0.4% excluding petroleum.
Reported on 2025-05-16, US import prices increased by 0.1%, with a 0.4% rise excluding petroleum. Non-fuel industrial supplies and materials increased by 0.8%, and capital goods increased by 0.6%.
Rush of Chinese goods to US boosts global freighters.
On May 16, 2025, it was reported that importers rushing to ship Chinese goods to the US, using a short reprieve from paralyzing tariffs, could provide a boost to global freighters.