Gold Faces Sixth Consecutive Decline Amidst Strengthening Dollar – Century Financial
- Gold
Gold is trading lower for the sixth straight session on Wednesday. The greenback has rallied in recent days amidst expectations of a more moderate pace of policy easing by the Fed. The markets are now expecting 50 bps of rate cuts in 2024, down from 75 bps just two weeks ago. There is an 87% chance of a 25-bps rate cut in November after the recent blockbuster NFP report alleviated concerns of a weakening labour market. As a result, the U.S. Dollar is exhibiting its longest winning streak since April 2022, rendering the precious metal more expensive for holders of other currencies.
Nevertheless, the precious metal has risen by over a quarter this year, supported by haven demand from geopolitical tensions, robust central bank purchases, and rate-cut optimism. As per the World Gold Council, global physically backed gold ETFs witnessed their fifth consecutive month of net inflows in September, bringing in a hefty $1.4 billion. Traders will keep an eye out for the FOMC meeting minutes and CPI data for further clues about the central bank’s trajectory.
Gold is down 0.21% at $2,616 with super-trend support at $2,573 and 9-SMA resistance at $2,644 on the day chart. Gold prices in the UAE today are as follows:
24 Carat – AED 317.00
22 Carat – AED 293.50
21 Carat – AED 284.00
18 Carat – AED 243.50
- Cryptocurrency
Cryptocurrency prices showed mixed trends on Wednesday. Bitcoin (BTC) remained volatile but managed to stay above the $62,000 level, while Ethereum (ETH) continued to hover around $2,400. Solana (SOL) and XRP saw slight dips in the past 24 hours. Bitcoin was down 0.26%, trading at $62,240, while Ethereum fell 0.36% to reach $2,435.
Cryptocurrencies have shown resilience amid traditional market fluctuations in the past 24 hours. Bitcoin remains strong above $62,000, with only a minor decline of 0.26%, while Ethereum has held stable said Shivam Thakral, CEO of BuyUcoin. Thakral attributed part of the market’s performance to easing geopolitical tensions in the Middle East, which could refocus investor interest on crypto assets. Thakral added that the launch of Binance’s NFT marketplace has further boosted Bitcoin’s acceptance as a legitimate payment method. Bitcoin is consolidating for a potential breakout, and with growing adoption and new platforms like Binance’s NFT marketplace, interest in cryptocurrencies is set to increase he said.
While inflows into spot ETFs have risen, this has yet to impact BTC’s price. Resistance has now lowered to $63,100, with support holding at $61,600. Meanwhile, Solana could experience notable price movement, fueled by Standard Chartered’s prediction of a potential 400% upside if Trump wins the upcoming elections.
Last Updated on 2 months by News Desk 2
