Wednesday, March 22, 2023

Gold Falls Below USD1800, Bitcoin Higher


Gold sell-off hitting interesting point

continues to suffer in the post-vaccine world. The Pfizer (NYSE:) announcement took the wind out of its sails last month just as it broke higher and was preparing a run at USD2,000. It’s been all downhill since then, despite the dollar not performing particularly well and US yields pulling back.

The break of USD1,850 was a massive psychological and technical blow. This was the late summer/early autumn lows and had been strongly supported on multiple occasions throughout that time. The loss of it was a blow and it’s still suffering the consequences, even as the dollar plunges to its lowest levels in two and a half years and yields ease off.

The combination, maybe, of stimulus expectations being pared back and better prospects for the economic recovery are weighing on the yellow metal. After months of being aligned with risk assets, we may also be seeing the re-alignment with other safe havens, which is proving a further drag. The next support is USD1,750-1,760, with USD1,700 below here being key. This represents a correction of between 50% and 61.8% of the whole pandemic move, so it will be an interesting test of gold’s bullish credentials over the medium term.

Bitcoin heading for a rollercoaster end to the year

The correction didn’t last long, with the cryptocurrency having sights set on new highs once again, with USD20,000 the ultimate goal in the short-term. A move into uncharted territory and the psychological boost that would come with a move like this could propel bitcoin aggressively higher. We’ve seen before what bitcoin can do once it develops a head of steam. Agree with the moves or not, I have no doubt it’s going to be a rollercoaster end to the year for cryptos.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories