The situation in the cryptomarket resembles an early thaw, when everyone wakes up and takes action. Will the market of cryptos be able to strengthen its position or is it just an illusion?
On Wednesday, gold once again moved multi-year highs up to $1817. Now the bulls are going to have to work very hard to try and reach the historic 2011 high of $1921 per ounce.
What can you say about the current gold market. The precious metal received very good support from low interest rates, as well as large injections of fresh liquidity from major central banks.
In the current situation the gold is ready to continue moving up to the first buy range of $1820 – $1825, but it is likely to happen with some pullbacks down.
Although Bitcoin does not show much volatility, you can see how the whole Blockchain industry and the ecosystem associated with it come alive. This gives reason to think that in the near future the demand for the first cryptocurrency will grow and the price will go up to $10000 per 1BTC.
The sharp price hikes explain that large investors with impressive amounts of money are entering the market. The optimism about the global economy growth also increases the desire to buy one of the most risky assets – Bitcoin. On Wednesday, Bitcoin made a breakthrough and rose in price by almost 2% to $9480.
The impression was that most investors in the stock markets began to live for one day, from news to news. How long can the market hold out in this state? It is difficult to answer this question. On Wednesday, White House Economic Advisor Larry Kudlow said the government has no plans to re-close businesses to fight the coronavirus. Encouraged investors reacted swiftly to this announcement with growth in major indices. However, the endless rise in gold prices gives a reason to think about the real state of the world economy. On Wednesday, the S&P 500 index was traded at the opening level – 3150.
DAX index on Wednesday fell by 0.97% mainly due to losses in construction and food industries. Important macroeconomic statistics were not released during the trading session, so investors relied on news and statistics on COVID-19 infection.
EUR/USD pair is trying to get out of the narrow range and with each trading session it is approaching the level of 1.1350. Due to the weakness of the US dollar, the next probable target is the area 1.1420.
What’s waiting for us today?
03.30 Consumer price index in China since the beginning of the year
08.00 Trade balance in Germany for May
14.30 Number of initial applications for unemployment benefits in the United States
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