Gold under pressure as central banks signal more rate hikes, Bitcoin surges on financial giants' crypto commitments
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Gold remains under pressure as Fed Chair Powell stuck to the hawkish script. It is not just the Fed, but also the BOE and the risk of many more rate hikes that are making non-interest bearing gold less attractive. If the BOE ends up needing to do supersized hikes, that could suggest more aggressive tightening could be seen with all the other major central banks.
Gold tentatively breached the $1930 region and remains vulnerable to a plunge towards $1900 level. If the BOE decision ends up being more hawkish than expected, momentum gold selling might get ugly.
The cryptoverse is alive. Bitcoin is surging after a few financial giants have made commitments to crypto. It started with BlackRock’s Bitcoin ETF filing and now others are following. Who needs regulatory clarity if you see BlackRock making a move. Bitcoin rose 6.8% to above the $30,000 level. The SEC has been playing hardball with a Bitcoin ETF and crypto watchers are speculating that BlackRock knows something.
Bitcoin momentum may last a little longer, but it will need to hear good news from the SEC to see a sustained rally target in the mid-$30,000 region.