While the price of bitcoin rallied during the first few days of October, the price of the precious metal also rose in percentage terms as the US dollar and US 10-year Treasury yields fell in the last week. An ounce of pure gold this weekend was trading at $1,760 per unit, up 1.32% since September 29.
Gold rises more than 1% this past week, metal’s rally attributed to weak dollar, US fears of default, upcoming quantitative easing decisions from the Federal Reserve and benchmark rate decisions
After the end of September, like clockwork, Bitcoin (BTC) and the crypto-economy saw billions return to the crypto markets. Today, the entire crypto economy is worth about $2.23 trillion, and BTC is worth $909 billion, or 41% of this total.
On the other hand, gold was lackluster in terms of percentage gains but the asset jumped 1.3% in the past six days. Gold market analysts, speculators, and precious metals pointed to the dollar’s weakness last week, which was attributed to the rise in the price of the bright yellow metal.
Last week, the dollar index and US Treasury yields both declined in value and prime ministers saw heavy demand for other fiat currencies. Moreover, market participants are concerned about the Fed’s moves, as discussions about cutting massive asset purchases each month and raising the record rate next year continue to rattle investors.
In addition, the US running out of money, raising the debt ceiling, or the possibility that it will default on its debts have added to these market fears. Mark Chandler, chief market strategist at Bannockburn Global Forex, explained that investors cannot imagine the US defaulting on its debt.
“It appears that the hawkish stance was the main factor driving the dollar higher in late September,” Chandler said. Immediately, however, fiscal policy is the focus, although investors seem to be eyeing it, as many find it inconceivable that the United States will default on its debt, added the market strategist.
On the other hand, analysts at schiffgold.com explain that ” [Federal Reserve] Apparently it monetizes US debt “in a research publication called”[the] The Fed absorbs $60 billion in 1-5 year US Treasuries in September.”
The Federal Reserve’s Schiffgold.com study published the details October 1st: “The Fed has shifted a significant proportion of debt issued since January 2020. The focus is clearly visible in bank notes and bonds to maintain a lid on long-term interest rates.” “The Fed can talk about tapering and even make attempts to do so, but they will inevitably reverse course and start expanding their balance sheet by more than $120. [billion] Month.”
FX Empire disavows year-end gold price predictions
Despite the 1.3% jump last week, FX Empire said its year-end forecast for gold was wrong. “[We’re nixing] The highest level for gold is expected at $2,401. We are wrong and we are not close. period,” FX Empire remarked sternly. Although there are still a few months left, FX Empire explains that it is unreasonable to think that gold will reach $2,401 at this point in the game.
“Because we are quantitatively driven, we are preventing something terribly massive from happening, to expect gold to reach $2,000 by the end of the year, let alone $2,401, quite out of any logical range,” emphasized Mark Mead Bailey, author of FX Empire.
The author added: “Gold just started the fourth quarter with its stability for the week yesterday (Friday) at $1,761 (after it settled in the third quarter on Thursday at $1,758). “A stretch to reach $2,401 in the remaining 63 trading days this year would require a 36.3% price increase,” Bailey added. Follow FX Empire Analyst:
Now he has such [a] Has there been a percentage increase in the price of gold before in a 63-day period? Absolutely. Obviously there was the infamous run from 1979 to 1980, with a similar movement in 1982; But after that, the price of gold did not rise again by at least a similar proportion until 2009.
What do you think of the recent 1.3% rise in gold prices and FX Empire canceling its year-end gold forecast? Tell us what you think about it in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, goldprice.org, FX Empire, Trading View,
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