Bitcoin and Gold Both Poised for Growth – Century Financial
- Cryptocurrency
Bitcoin (BTC), the world’s largest cryptocurrency by market value, surged over 3% to reach $67,200 on Wednesday, its highest level since July, driven by investor enthusiasm and political developments in the US. Market optimism was fueled by strong participation in Trump-backed WLFI tokens and anticipation of crypto-friendly regulations as the US presidential elections approach.The rising inflows into Bitcoin ETFs, which have seen over $19 billion in net, also contributed to the bullish sentiment. Meanwhile, BlackRock’s positive outlook and Standard Chartered’s forecast for BTC reaching $73,000 have further boosted momentum. BTC was trading 3% higher at $67,245. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, gained 1%, trading at $2,620.Bitcoin has successfully reclaimed $67,000 after robust buying activity yesterday. With critical support at $64,000, Bitcoin should consolidate at current levels this week before gunning for the next resistance at $69,000.Ryan Lee, Chief Analyst at Bitget Research, cited several key reasons for Bitcoin’s rally beyond $67,000:
- Positive policy impact: US presidential candidate and current Vice President Kamala Harris pledged support for a regulatory framework for digital currencies, boosting the crypto market’s performance.
- Reduced potential selling pressure by bankrupt Mt. Gox cryptocurrency exchange.
- Large ETF inflows: In the past 24 hours, there was a large inflow of $555 million into BTC ETFs and $17 million into ETH ETFs, reflecting optimism among Wall Street institutional investors towards crypto assets.
- Gold
The New York Federal Reserve Bank’s barometer of general business conditions fell sharply by 23.4 points, reaching its lowest point in five months at -11.9 in October. New York state’s manufacturing sector also experienced a contraction this month as orders and shipments decreased, indicating a sluggish manufacturing environment. This sent treasury yields lower, thereby lending support to gold.Delegates at the London Bullion Market Association’s annual conference forecasted that gold and silver prices would climb higher within the next year. Meanwhile, Hong Kong aims to establish a global gold trading hub and build internationally accredited metal warehouses in a bid to deepen market reforms and identify new avenues for economic growth.Gold is one of the strongest performing commodities in 2024 and its latest record high was set above $2,685 in September. Uncertainty pertaining to the U.S. election outcome, rate-cut optimism, and central bank purchases are propelling gold higher. In the very short-run, gold could consolidate as investors await the release of U.S. retail sales, industrial production figures, and weekly unemployment claims later this week.Gold is up 0.49% at $2,676 with support around $2,640 – where the 9-SMA meets the 21-SMA on the day chart. Gold could encounter resistance around $2,685. Gold prices in the UAE today are as follows:
24 Carat – AED 323.00
22 Carat – AED 299.00
21 Carat – AED 289.50
18 Carat – AED 248.00
Last Updated on 2 months by News Desk 1
