The price of bitcoin rose in the first few days of October, while the price of precious metal gold rose as a percentage as the US dollar and the country’s 10-year Treasury yield fell last week. An ounce of fine gold traded at $ 1,760 a unit over the weekend, up 1.32% from September 29.
Gold rose more than 1% last week, with the dollar charging against the dollar, the US default fears, the Federal Reserve advancing QE and benchmark rating decisions.
Clockwork, Bitcoin after the end of September (BTC) And the crypto-economy saw billions flowing back into the crypto market. Today, overall The occult economy It is valued at about $ 2.23 trillion BTC Commands $ 909 billion or 41% of that total.
On the other hand, in terms of percentage gains, gold was in short supply but assets have risen 1.3% in the last six days. Gold bugs, speculators and precious metal (PM) market analysts have turned to the soft dollar, which pushed up the price of the shiny yellow metal last week.
Both the dollar index and the U.S. Treasury are yielding last week The value has dropped And the Prime Minister saw significantly demand From other Fiat currencies. Furthermore, market participants are concerned about the actions of the Federal Reserve as discussions about reducing each month’s massive asset purchases and raising the benchmark rate next year are causing unrest among investors.
Additionally, the United States Lack of funds, Raising Debt ceiling, Or perhaps Its default This has exacerbated market fears. Mark Chandler, chief market strategist at Bannockburn Global Forex, explained that investors could not imagine the U.S. defaulting on its debt.
“The main factor driving the dollar higher at the end of September seems to be the more eagle stance,” Chandler said. Noted This weekend. “However, more quickly, the focus is on monetary policy, and while investors seem to be looking at it, many see the U.S. debt default as unthinkable,” the market strategist said.
On the other hand, analysts at schiffgold.com explain that “the [Federal Reserve] Clearly makes money from US debt ” Research post Named “”[the] The Fed will absorb $ 60b from U.S. Treasuries for 1-5 years in September.
“The Federal Reserve has been making a large percentage of its loans since January 2020. It is clearly focused on bonds and notes to keep a lid on long-term interest rates,” the schiffgold.com Federal Study details October 1. Explained. The Fed can talk about taming and even trying to tame it, but they will inevitably reverse the route and start expanding their balance sheet to more than $ 120. [billion] A month. “
The FX Empire rejects the year-end gold price forecast
Despite rising 1.3% last week, the FX Empire He said That the forecast for its year-end gold is wrong. “[We’re nixing] Our gold forecast is $ 2,401 higher. We are wrong, not close. Time, ”the FX Empire noted. With just a few months left, the FX Empire explains that it is illogical to assume that gold will be worth $ 2,401 at this point in the game.
“Because we’re quantitatively guiding, preventing something huge from happening, other than getting $ 2,401 in anticipation of reaching $ 2,000 by the end of the year, is not the right gamble of any logical range,” said Mark Mead Bailey, author of FX Empire. Stressed.
“Gold now started Q4 yesterday (Friday) at $ 1,761 for the week (after finishing Q3 at $ 1,758 on Thursday),” the author said. “We need a 36.3% price increase to increase to $ 2,401 for the remaining 63 days of the year,” Bailey said. The FX Empire analyst added:
Now there is one [a] Percentage increase in the price of gold that has never happened before in 63 days? completely. Apparently the infamous run lasted from 1979 to 1980, with a similar move in 1982; But it was not until 2009 that the price of gold rose by the same percentage again.
What do you think of the recent 1.3% rise in gold prices and the FX Empire ending the year-end gold forecast? Let us know what you think about this topic in the comments section below.
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