Gold Surges; Bitcoin Gains Momentum – Century Financial
Gold surged above $2,700 an ounce for the first time as investors flocked to safety amidst rising geopolitical tensions and a tight U.S. presidential election race. Israel declared it killed Hamas leader and vowed to continue fighting until all hostages seized by Hamas were released. Additionally, traditional election polls in the U.S. are painting a different picture compared to the decentralized betting polls – thereby increasing uncertainty. This has heightened haven demand for the precious metal – which is overshadowing any macroeconomic headwinds like a resilient U.S. economy.
Latest reports revealed retail sales in September strengthened more than expected while jobless claims declined unexpectedly – prompting traders to pare bets about the scale of rate cuts. This hasn’t dimmed gold’s appeal – which is also being driven higher by robust central bank purchases and strong ETF inflows. Gold ETFs inflows finally turned positive recently.
Gold is up 1.4% so far this year and has risen 30% year-to-date. The precious metal is up 0.4% today at $2,704, with support at $2,694 and $2,677. Gold prices in the UAE today are as follows:
24 Carat – AED 328.25
22 Carat – AED 304.00
21 Carat – AED 294.25
18 Carat – AED 252.25
- Cryptocurrency
Cryptocurrency markets traded higher on Friday, led by gains in Bitcoin, Dogecoin, Solana, and Shiba Inu. Bitcoin (BTC) was trading 1.26% higher at $67,869, while Ethereum rose by 1.07% to $2,627. Earlier in the day, Bitcoin briefly touched the $68,300 mark.
Bitcoin is consolidating below a key resistance level at $68,000. With nearly $1.5 billion in inflows into spot ETFs this week, the momentum is on the side of the top crypto asset. A clear break above this resistance could push Bitcoin towards $69,000, the final hurdle before aiming for new all-time highs. Ethereum holds firms around $2,600, supported by a steady uptick in ETF inflows.
Bitcoin rally was followed by US presidential candidate Donald Trump taking an unprecedented lead over Kamala Harris, leading by more than 20% on prediction markets. Trump being a vocal bitcoin supporter, has fuelled the interest of bulls. On the other hand, with the US economic data yesterday showing that consumer spending has been increasing at a rapid rate – the Fed might not be as aggressive in cutting rate cuts as the market has been predicting, which can be a tad negative for bitcoin.
New Bitcoin whale holdings have surged 813% year-to-date, totaling over $130 billion, highlighting strong interest from institutions and ultra-high-net-worth individuals (UHNIs). This trend is expected to continue, especially as central banks like the European Central Bank cut interest rates for the third time, signaling a positive economic outlook. Bitcoin’s support level remains at $66,400.
Gulf MarketsThe ADX General is declining slightly to 9,268.37 in Abu Dhabi. Aldar Properties PJSC contributed the most to the index decline, decreasing 1.0%. Al Khaleej Investment PJSC had the largest drop, falling 1.8%.
The DFM General Index is rising 0.2% at 4,467.81 in Dubai. Emirates NBD Bank PJSC contributed the most to the index gain, increasing 1.0%. Tecom Group PJSC had the largest increase, rising 2.2%.
Oil edged higher, after notching its first gain in five sessions, with eyes on developments in the Middle East after the death of Hamas leader Yahya Sinwar.
Brent advanced toward $75 a barrel, while West Texas Intermediate rose to around $71. The killing of Sinwar by Israeli soldiers led President Joe Biden to renew calls for a cease-fire in Gaza, although Prime Minister Benjamin Netanyahu said operations are “yet to be completed.” Sentiment was lifted by a report on Thursday that showed US oil stockpiles shrank 2.19 million barrels last week, indicating healthy consumption in the biggest crude user. Data from China on Friday also showed tentative signs of economic improvement in the second-biggest economy, although apparent oil demand fell from a year earlier.
“China demand is an important piece in the whole equation,” said Zhong Liang Han, a Singapore-based investment strategist at Standard Chartered Bank. “But we do think supply-side issues are the larger piece, and there’s quite a bit of excess supply expected.”
Brent’s latest move higher has failed to offset sharp declines on Monday and Tuesday, with futures set to notch a 5% drop this week after concerns eased that Israel would strike Iran’s energy infrastructure in retaliation for an attack at the start of the month. In the longer term, the International Energy Agency forecast that rising global supply could lead to a sizable surplus next year.
Last Updated on 3 months by News Desk 1
