US inflation data for June, followed closely by gold and Bitcoin investors, will be released next week. This data is expected to affect all asset classes, including gold and cryptocurrencies. Apart from this, there are other developments and data to follow. We have released the panorama of the week for our readers, together with the evaluations of the analysts.
Determinants for gold and Bitcoin: DXY, US inflation data and the Fed
cryptocoin.comAs you can follow, gold prices followed a fluctuating course. It fell to a 10-month low in international markets throughout the week. But towards the end of the week it regained some of the lost ground. The Fed continues its tightening cycle in the face of rising inflation data. That’s why the dollar index (DXY) is rising to 20-year highs. These developments led to a sharp decline in gold prices.
According to experts, gold investors preferred the safe-haven dollar to gold. DXY rallied to 107.78, breaking the critical resistance at 105.80 during the incessant talk about rate hikes by major central banks. Analysts expect factors such as DXY, US inflation data and US Fed speech to continue to dictate gold price action in the near term.
US inflation rose more than expected again in May. Therefore, the hopes that the increase in the inflationary trend was flattened were dashed. The CPI rate increased by 1.0% compared to April, bringing headline inflation to 8.6 percent, the highest level in 40 years. In the data release, US inflation data for June will be at the forefront. Expectations are for an increase to 8.7. Pritam Patnaik, Head of Commodities at Axis Securities HNI and NRI Purchases, comments:
This will push gold prices down until the next Fed meeting and comment.
Top 5 factors that will affect gold and Bitcoin price this week
dollar index (DXY)
Religare Broking Ltd. Sugandha Sachdeva, Vice President of Commodities and Currency Research at the company, comments:
The first and foremost dominant factor will be the movement of the dollar index. The continued upward momentum in the safe-haven currency, after last week’s dramatic rally, is putting gold prices under further pressure. However, a respite from the rally will be a positive trigger for gold prices.
crude oil price
The United States and its allies are considering a proposal to limit the price of Russian oil to between $40-60 per barrel. Sugandha Sachdeva of Religare Broking explains:
The movement of crude oil will continue to be important. US Treasury Secretary Janet Yellen will travel to the Indo-pacific region next week. Yellen will seek support to limit the price of Russian oil.
US inflation data
US inflation data for June will come next week. It will affect the entire asset class, including gold and Bitcoin. Anuj Gupta, Vice President of Research at IIFL Securities, said:
A disappointing data is likely to trigger a profit reservation in the US dollar. It is also likely to lead to a sharp rise in gold and other assets worldwide. Therefore, it is necessary to follow the upcoming US inflation data.
US Federal Reserve speeches
This week, the speeches of US central bank officials will be at the forefront. Anuj Gupta of IIFL Securities comments on the impact of the conversations:
It is said that the Fed may soften its hawkish stance on rate hikes, as previous hikes failed to contain inflation. So the speech is important as it will give a clue as to what will come out of the next US Fed meeting.
The safe haven of recent times is the dollar
DXY hit its highest level in two decades last week. TL, on the other hand, returned to its pre-interventions level. Also, before the weekend, Fitch Rating downgraded Turkey’s foreign currency credit rating to one lower level. In addition, he rated the outlook as negative. Meanwhile, there is a decrease in Turkey’s foreign exchange reserves. The measures taken do not seem to have worked well. Therefore, the movement of the dollar will be one of the local triggers for the gram gold price.
US NFP beats expectations despite recession fears
June brought in a strong 372K salary increase, beating the consensus and calming recession concerns. Unemployment rate remained at 3.6%. Total job gaps remain quite high. However, in May, it decreased by 427 thousand to 11.3 million. The ISM services index fell to 55.3 in June, recording the lowest level in two years.
Meanwhile, the yield on the two-year Treasuries has surpassed the yield on the 10-year Treasury note this week. An inverted yield curve has historically been a reliable indicator of an impending recession. Also, the Commodities Research Bureau’s All Commodities Index closed the week down 1.9% on Thursday.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.