Gold tried to dip to a four-month low of $1,800, before settling at a low of $1801.55 an ounce on Wednesday, with the strength of the rally remaining in a fragile bearish pattern. Aside from the coVID-19 vaccine and Democratic presidential candidate Joe Biden’s nomination of new U.S. Treasury secretary Janet Yellen as risk signals, Bitcoin is once again looking for attention. It has risen more than 160 percent since January due to strong institutional demand and scarcity, and the question of whether it is a new haven favorite has resurfaced.
Fundamental Analysis: The US presidential transition is about to begin! The new female finance minister’s policy will influence the direction!
Mr. Biden was notified Monday by the General Services Administration that he could officially begin the transition. The GSA is the federal agency responsible for the transfer of presidential powers. Us Secretary of State Mike Pompeo also confirmed the news in an interview with Fox News on Tuesday (November 24). “Today, we begin to review the GSA’s decision and will do everything required by law. We’re going to finish the job.” Pompeo said at a news conference two weeks ago that he would make a smooth transition to a “second Trump administration.” He has since softened his tone, promising a “good transition” on January 20, inauguration Day, no matter who is in the White House.
Mr Trump has yet to concede the election and has launched a legal battle, claiming the results were plagiarized to overturn it. On Tuesday, Mr. Biden introduced his foreign policy and national security team, vowing to steer the United States away from the unilateral nationalism Pursued by Mr. Trump and to work with American Allies.
US President Donald Trump’s campaign may rely on a complex and possibly unprecedented legal and legislative maneuver to derail Democratic presidential candidate Joe Biden’s victory in Pennsylvania and possibly other states, a lawyer for the campaign said on Wednesday. That strategy would require a federal court to nullify Pennsylvania’s results and then get the state legislature to agree to send Trump electors to the electoral College.
In the case of coVID-19 vaccine, the global cumulative number of confirmed cases is close to 60 million, with more than 1.4 million deaths. As the number of confirmed cases in the United States continues to climb at a record pace, health care workers are warning clinics and emergency rooms that they are overwhelmed. Analysts are waiting for the latest fiscal and monetary announcements from governments and central Banks to help economies recover from the outbreak. What is clear is that there is still a short-term need for safe havens, and gold bulls should not give up easily until a vaccine is actually available and can help contain the outbreak.
The minutes of the federal reserve’s November 4 solstice5 policy meeting were released on Wednesday (November 25). Fed officials were involved in detailed discussions about its asset purchase program at a meeting earlier this month, the minutes show. Some members at the meeting said they expected some changes to be made. While members said the current pace of purchases helped to keep financial conditions accommodative, they noted that changes could be made if necessary. The discussion, however, did not set a specific date for the changes, saying only that they could happen soon. “Participants noted that, in appropriate circumstances, the Committee could provide additional easing measures, such as accelerating the pace of its purchases or converting purchases of Treasuries into longer-maturity treasuries without increasing the scale of its purchases,” the minutes said. Or, where appropriate, a committee could provide more leeway by purchasing at the same pace and composition over a longer period of time.” Spot gold fell slightly in the short term after the Fed minutes were released, falling back to near flat trading.
While a number of recent factors appear to be working against gold, the fact is that a Yellen job could lead to a more unified U.S. fiscal and monetary policy that would keep the U.S. loose for longer, with low interest rates an important factor supporting the price of gold.
Fundamental analysis: Bitcoin soar probe! Risk-averse new favorite topic continues around!
Bitcoin investors, including top hedge funds and fund managers, are expecting the virtual currency to rise in price within a year. But skeptics of Bitcoin still see volatile cryptocurrencies as speculative assets that don’t offer a store of value like gold. Reuters analyst Gertrude Chavez-Dreyfuss said bitcoin is now up more than 160 percent due to strong institutional demand and scarcity, with large U.S. payment companies such as Square and PayPal buying on behalf of customers.
Bitcoin is at its all-time high of nearly $20,000 in December 2017. It debuted at zero in 2011 and last traded at $18,415. Brian Estes, chief investment officer of Off The Chain Capital, said that bitcoin would go from $18,000 to $100,000 within a year, which is clearly not too difficult to achieve. “I’ve seen bitcoin go up 10 times, 20 times, 30 times in a year,” he said. So in my opinion, a fivefold increase is not a big problem.”
Citi analyst Tom Fitzpatrick said in a report last week that bitcoin could climb to $318,000 by the end of next year, citing limited supply, easy cross-border flows and opaque ownership. Pantera Capital wrote in a letter to investors last week that Square and PayPal recently launched cryptocurrencies for their more than 300 million users, and they’re always looking for new cryptocurrencies. That has led to a shortage of bitcoin, which has pushed bitcoin higher in the past few weeks.
With Duquesne Capital founder Stanley Druckenmiller and BlackRock Inc global fixed income investment officer Rick Rieder both trumpeting bitcoin, Tempus Inc analyst Juan Perez said he was unimpressed and even shocked by all the high profile forecasts, adding that continuing to invest in bitcoin next year would amount to investing in the collapse of the global financial system. “Governments around the world are not going to let this happen,” he said. They don’t break down like fiat money.”
Spot gold hovered around $1810, off an earlier high of $1818, or 0.1 percent, or $2. Short sellers are fighting back, with sellers focused on the next price being the May 18 high of $1,765. In addition, a 21-hour moving average (HMA) of $1,809 could challenge the chances of recovery. If the price is higher than the latter, you may need to test a 50-hour moving average of $1,814. After breaking the 50-hour moving average, channel resistance will appear again. However, the downtrend seems to be catching investors’ attention as RSI turns lower in a bearish zone below 50.00.