Fed meeting to spur volatility for Gold and Bitcoin
|Gold
Today will see further volatility in the precious metal. The price activity over the last two days has been poor, but keep in mind that the price is already flirting with its all-time high. As a result, it is very logical for traders to take some profit following such a spectacular gain.
For the time being, everything is reliant on how the Fed plays its monetary cards. A hawkish position by them is expected to strengthen the dollar index, which might spark a sell-off as the dollar index gains traction. But, after the first jerk response, the gold price may rise since traders do not want to hear the Fed being aggressive with its monetary policies. This is because it introduces more danger into the system, which everyone is attempting to avoid.
A dovish Fed might boost gold prices if the dollar index continues to suffer. Overall, we feel that the path of least resistance for gold prices is more skewed to the upside than to the downside, given the momentum in gold prices.
Bitcoin
The ancient crypto king has received a lot of attention this month as a result of the US and European financial crises. It has reclaimed its status as a safe haven asset while simultaneously demonstrating the very essence of its existence, which is that controlled money via centralised monetary policy is a formula for catastrophe in the contemporary day. This is because banks invent them out of thin air and rely on them to restore trust. This aspect, confidence, has become a scarce commodity, and traders and investors are doubting every legislative action.
Technically, the price is still hesitant to test the 30K price level, but if this level is broken, we are likely to enter a true bullish phase, and talk will begin that the bottom has been reached, Bitcoin's price has doubled in a matter of minutes, and it is time for FOMO.
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