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Gold under pressure as central banks signal more rate hikes, Bitcoin surges on financial giants' crypto commitments

Gold under pressure as central banks signal more rate hikes, Bitcoin surges on financial giants' crypto commitments
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Table of contents

  1. Gold
    1. Bitcoin

      Gold

      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.    

       

       

      Bitcoin

      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. 

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      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.  

       

       

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      Ed Moya

      Ed Moya

      With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.


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