Gold Update
As the upside risks associated with tensions in the Middle East diminish, the price of gold continues to decline. Because market players anticipate that tensions between Israel and Palestine will not escalate, the precious metal is still under pressure. The Federal Reserve’s (Fed) caution on interest rate forecast has reduced the appeal of gold together with the waning Middle East conflicts.
Investors are expecting for Federal Reserve Chairman Jerome Powell to provide an update on the prospects for the economy and the monetary policy meeting in December. Fed- Powell is anticipated to stick to the position of keeping interest rates higher for an extended amount of time as cracks start to show in the US labour market, which could limit expectations for inflation. In the event that inflation’s march towards 2% slows down, Jerome Powell may issue more rate increases warnings.
USD Shift
This week, it appears as though the US Dollar (USD) is adrift and in need of guidance—that is, a catalyst—to steer it in any direction. The US Dollar Index is currently trading near the middle of this week’s range, which indicates that traders are getting weary of trying to determine whether the US economy is headed for a recession or a soft landing.
Regarding the economic data front, traders will be watching the speakers from the US Federal Reserve scheduled for this Thursday for any new cues. Should there be an increase in unemployment figures, the weekly jobless claims could provide some insight and validate the lower US jobs data from the previous week. That might be a warning flag, making the US dollar less valuable relative to the majority of other major currencies.
Cryptocurrency Pump
The Securities and Exchange Commission (SEC), the US financial regulator, must approve the spot BTC Exchange Traded Fund (ETF) before the price of bitcoin may rise to its optimistic aim of $49,000.
The first spot Bitcoin ETF approval window opens today, according to a Cointelegraph story. This is a significant development that market players are closely monitoring.
The historic win Grayscale had over the SEC set off a chain of events that will soon result in the approval of Bitcoin spot ETFs. Grayscale’s win in the DC Court of Appeals meant that the SEC could no longer refuse spot bitcoin ETFs for the grounds it had previously provided.
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