Given the fact that inflation is high in the United States, the precious metal is in a great situation. In reality, every single central bank is concerned about inflation. This is why the Fed's aggressive monetary policy isn't driving gold prices off a cliff. In general, the dollar index rises in response to the Fed's hawkish posture, which is bad news for gold prices. Yesterday's inflation data brought more bids to the market then many expected, and this pattern is likely to continue if inflation situation continues to go out of control.
The gold price is now trading above the 1,800 support level, which is actively monitored by traders and is also seen as a key support level. In the following days, the gold price is anticipated to reach the 1850 handle.
Bitcoin
Bitcoin, which is naturally recognized as an inflation hedge, has seen some bids over the last few days. There is, however, more to the tale than that. According to exchange statistics, whales are tampering with the bitcoin supply. This indicates a large increase in bitcoin outflow from crypto exchanges to personal wallets. This is causing a lack of bitcoin supply, which is pushing the bitcoin price upward.
In terms of price action, the greatest and most crucial figure for bitcoin is the support of 40K, and as long as this remains intact, which is unlikely, we may expect bigger moves for the Bitcoin price.
THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER
Latest Forex Analysis
Editors’ Picks
EUR/USD trades below 1.1450 despite disappointing US data
EUR/USD is having a difficult time gathering bullish momentum in the early American session and trades in the negative territory below 1.1450. The US Census Bureau reported on Friday that Retail Sales in December fell by 1.9%, missing the market expectation of a no-change by a wide margin.
GBP/USD drops below 1.3700 as dollar gains traction
GBP/USD stays under modest bearish pressure in the American session and trades below 1.3700. The US Dollar Index is clinging to modest daily recovery gains near 95.00 despite weaker-than-forecast macroeconomic data releases from the US.
Gold fluctuates in daily range above $1,820 after US data
Gold declined to $1,820 during the European trading hours but managed to edge higher toward $1,830 in the early American. The benchmark 10-year US Treasury bond yield retreated from 1.75% after the dismal US data, allowing XAU/USD to gain traction.
Dogecoin price on track to hit new highs, rallying 16% with Tesla payments going live
Tesla announced that it accepts Dogecoin and cannot receive or detect any other cryptocurrency. Analysts have predicted an explosive rally in Dogecoin price, continuing the uptrend.
Why did TSLA stock fall 7% on Thursday?
Tesla stock dumps on Thursday as tech takes a bath. TSLA shares fell nearly 7% to close at $1,031.56. Tesla support at the short-term pivot remains at $980.