Gold Near Record Highs. How Long Can This Rally Last?
strengthened once again, moving closer to record highs. Could there be another strong rally? Find out in our analysis.
- Events. The report showed that the inflation rate remains steady. Still, there was an unexpected drop in , and rose to their highest level in four years. These factors added to market uncertainty, increasing demand for safe-haven assets, so gold climbed to around $3,650 per ounce on Friday.
- Background. Markets believe the U.S. (Fed) will ease policy, with at least a 0.25% rate cut coming as soon as next week. Lower rates usually weaken the . Meanwhile, tensions in the Middle East and Ukraine also fuelled demand for safe assets.
- Possible outcome. If the Fed confirms rate cuts, gold could push to new record highs. On the other hand, a more cautious approach might cause a pullback.
Watch the next Fed meeting closely. Consider using gold as a hedge in times of uncertainty, but remember that major policy announcements can cause short-term volatility.
Euro Rises as Traders Prepare for Fed Rate Cuts. Is This the Start of a Trend?
The bounced back on Thursday, while the U.S. dollar weakened after the release of key inflation and jobless claims data. What does this mean for traders and the future of the euro? Explore the details in our breakdown.
- Events. The euro strengthened against the U.S. dollar, rising above $1.1700.
- Background. Due to the U.S. economic slowdown, markets expect the Federal Reserve (Fed) to cut interest rates next week. Lower U.S. rates typically weaken the dollar. On the other hand, the European Central Bank (ECB) kept its rates steady, making the euro more attractive.
- Possible outcome. If the Fed follows through with rate cuts, the euro could continue to strengthen against the dollar. However, any surprises could cause fluctuations in the performance of both currencies.
Watch for any Fed signals regarding rate cuts, as they could influence EUR/USD. However, be prepared for volatility, especially around and Fed announcements.
Bitcoin Reacts to US Inflation Data—Here Is What Happened and Why
saw a small rise on Thursday after the release of the latest U.S. inflation data. Find out what is driving this trend in our Octa analysts’ breakdown below.
- Events. Hong Kong-based crypto exchange HashKey Group announced plans for a new $500 million digital treasury fund, focused on Bitcoin and Ethereum. However, recent U.S. inflation reports have had a bigger impact on Bitcoin, as it rose briefly to $114,034.
- Background. Inflation data typically influences Bitcoin prices because it affects interest rates and the strength of the U.S. dollar. While the Producer Price Index () dropped unexpectedly, the Consumer Price Index () data pushed Bitcoin higher as it has a more direct impact on risk assets like crypto.
- Possible outcome. Higher inflation data could pressure the Bitcoin price and lead to a stronger dollar, as markets anticipate tighter monetary policy from the Federal Reserve. However, lower inflation could support crypto markets.
To navigate possible price swings, watch for Bitcoin’s resistance at $114,000 and support at $111,000. Adjust your strategy based on market reactions to the CPI report.