Gold price felt selling pressure as it struggled to stay above the critical $1,920.00 resistance. Fed policymakers remain hawkish on the interest rate outlook, according to Federal Open Market Committee (FOMC) minutes. That’s why it’s having a hard time attracting precious metal bets. There is excitement in the market as Bitcoin touches $31,500, a new high for this year. Now gold and Bitcoin investors have their eyes on this data.
The reaction of gold may be upwards!
TD Securities economists are evaluating how the data to be announced in the USA today will affect the gold price. According to economists, it is possible that gold’s reaction will be asymmetrically upside on the miss in the US data. In this context, economists make the following assessment:
Any further delay of the impending recession threatens a recovery in real wages that could cause the Fed to continue its battle against inflation. However, we expect data trends to soften enough to prevent the Fed from continuing its war on inflation any further, especially as the more cyclical components of growth data are already deteriorating rapidly. This has resulted in attention being drawn to ISM services and employment data. Gold’s response function may be asymmetrically skewed upwards in case of a miss in the data.
Gold and Bitcoin investors focus on this data.
Concerns about the economic outlook deepen due to tight credit conditions. Despite this, Fed policymakers support more restrictive monetary policy. This is due to the fact that inflation is still stubborn due to strong demand. On Thursday, gold and Bitcoin investors will focus on the Automatic Data Processing (ADP) Employment Change report. According to forecasts, the US ADP report will show a new job increase of 228 thousand in June compared to the previous 278 thousand jobs.
In addition to the ADP Employment report, the US ISM Services PMI will also be on the radar. Economic data is projected to be 51.0 higher than the previously announced 50.3. Expectations for the New Orders Index are that it decreased to 53.3 compared to the previous statement of 56.2. Meanwhile, analysts expect DXY to stay flat as investors pull over ahead of key economic indicators. However, the yield on 10-year US Treasuries rose to 3.97%.
Gold price technical analysis
Market analyst Sagar Dua notes the following regarding the technical outlook for gold. Gold price is trying to surpass the 100-period Exponential Moving Average (EMA), which is hovering around $1,929.00. However, it faced serious selling pressure in the process. The precious metal failed to hold above the downtrend line, which hit a high of $2,079.76 on May 03. The Relative Strength Index (RSI) (14) fluctuates between 40.00-60.00. It will likely trigger bearish momentum if it drops below 40.00.
Bitcoin bull market coming?
The crypto bull market looks like a lot this morning with Bitcoin touching $31,500, a new high for this year. According to experts, all that is needed is for Bitcoin to rise above this level and stay there for a few days. In this case, the breakout will be confirmed and signal that Bitcoin will start to go higher. This new bullish environment may have been partly caused by the CEO of Blackrock, the largest AUM company on the planet, saying yesterday on national television that Bitcoin has “digitized gold” and is an “international asset”.
cryptocoin.comAs you follow, Blackrock applied for a Spot Bitcoin ETF along with some other major institutional entities. The latest move for BTC came after that as well. Blackrock has experience getting regulators to sign many ETF applications. Given its outstanding success, this application is an exceptionally good bet. Bitcoin’s current good fortune is also shared with some of the cryptocurrency market. According to analysts, if Bitcoin goes up, most of the crypto market will follow. At least as long as upcoming regulations allow.
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