Bitcoin Ethereum, and Ripple begin the week on a cautious note, trading near their respective support levels. Market sentiment remains fragile following last week’s volatility, with BTC, ETH, and XRP correcting by nearly 10%, 14%, and 7%, respectively.
Top Crypto Gainers: Aster, Starknet, and Zcash recovery at risk
Aster (ASTER), Starknet (STRK), and Zcash (ZEC) trade in the green over the last 24 hours, struggling to retain gains while the broader cryptocurrency market is in the red. The technical outlook of Aster and Zcash remains mixed as bearish potential arises, while Starknet could extend its consolidation range breakout rally.
Aster struggles at key resistance
Aster is down roughly 3% at press time on Monday, after a 14% surge from the previous day. The Binance-backed perpetuals-focused Decentralized Exchange (DEX) risks a steeper correction as it reverses from the $1.29 resistance level, marked by the October 14 low.
The immediate support for ASTER is the 200-period Exponential Moving Average (EMA) on the 4-hour chart at $1.19, followed by the 50-period EMA at $1.12. If these crucial moving averages fail to absorb the pullback, it could threaten the $1.00 psychological level.
The Relative Strength Index (RSI) at 65 edges lower from the overbought zone as buying pressure wanes amid the intraday pullback. If the RSI falls below the midline, it could signal a renewed selling pressure.
Still, the Moving Average Convergence Divergence (MACD) maintains a steady uprise with the signal line indicating strong bullish momentum. If the blue line crosses below the red line, it would indicate a fresh bearish momentum cycle, triggering a sell signal.
If ASTER breaks above $1.29, the uptrend could target the October 13 high at $1.59.
Starknet extends the rally
Starknet edges higher by 7% at the time of writing on Monday, marking its fifth consecutive bullish candle. The consolidation breakout, as anticipated previously by FXStreet, aims for the R2 Pivot Point at $0.2777.
The momentum indicators maintain a bullish stand on the daily chart as the RSI at 74 rises into the overbought zone. Meanwhile, the MACD and signal line continue to extend the uptrend, accompanied by successively rising green histogram bars, indicating intense bullish momentum.
On the flip side, key support for Starknet remains the R1 Pivot Point at $0.1904.
Zcash recovery at risk
Zcash trades above $700 by press time on Monday, holding steady for five straight days of uptrend, which marked a bounce back within a larger rising channel pattern. However, the bullish struggle to surpass the $750 high from November 7 signals a potential double-top pattern formation, which could result in a bearish reversal.
In case of a reversal, the privacy coin could test the local support trendline at $512, followed by the November 12 low at $424.
Corroborating the downside risk, the steady decline in RSI while Zcash recovers flashes a bearish divergence. Meanwhile, the MACD and signal line hold an uptrend, recovering after a sudden bearish collapse last week.
On the upside, the R2 Pivot Point at $861 could serve as $750 breakout target.
When is the Japan quarterly prelim GDP and how could is affect USD/JPY?
Japan quarterly prelim GDP Overview
The Japan’s Cabinet Office will publish its data for the third quarter (Q3) at 23.50 GMT. Gross Domestic Product is estimated to show a contraction of 0.6% QoQ in the Q3, compared to an expansion of 0.5% in the previous reading. Japan’s GDP Annualized is projected to show a fall of 2.5% versus a rise of 2.2% prior.
The Gross Domestic Product is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity.
How could the Japan quarterly prelim GDP affect USD/JPY?
USD/JPY trades on a flat note on the day in the lead up to the Japan quarterly prelim GDP data. The pair steadies as traders weigh whether the US Federal Reserve (Fed) is likely to cut rates in December.
If data comes in better than expected, it could lift the Japanese Yen (JPY), with the first upside barrier seen at the November 13 high of 155.02. The next resistance level emerges at the February 3 high of 155.88, en route to the January 23 high of 156.75
To the downside, the November 10 low of 153.41 will offer some comfort to buyers. Extended losses could see a drop to the November 7 low of 152.82. The next contention level is located at the October 29 low of 151.54.
Economic Indicator
Gross Domestic Product (QoQ)
The Gross Domestic Product (GDP), released by Japan’s Cabinet Office on a quarterly basis, is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.
Next release: Sun Nov 16, 2025 23:50 (Prel)
Frequency: Quarterly
Consensus: -0.6%
Previous: 0.5%
Source: Japanese Cabinet Office
GDP FAQs
A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022.
Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.
A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency.
When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate.
When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.
Michael Saylor denies reports of Strategy selling Bitcoin, reaffirms accumulation
Strategy CEO Michael Saylor claims the company did not sell any of its Bitcoin, following rumours that the firm moved over 40,000 BTC across several wallets, according to the Arkham Intelligence dashboard.
Strategy CEO reaffirms company’s treasury stance amid market downturn
Strategy CEO Michael Saylor denied rumors on Friday that the company had sold approximately 43,415 BTC worth $4.26 billion to over 100 different addresses, amid a sharp crypto market downturn.
The speculation stemmed from Arkham Intelligence data showing large transfers and an apparent drop in tracked holdings, fueling investor panic as Bitcoin fell below $95,000. Addressing the on-chain activity directly, Arkham Intelligence clarified that the movements likely represent a custodian and wallet rotation rather than sales.
“Over the past two weeks, the Arkham platform has shown Strategy making a series of transfers from Coinbase Custody (their existing custodian) to a new custodian. It is likely that today’s transfers are a continuation of this rotation,” Arkham wrote in a statement.
The firm added that such transfers could involve direct moves to the new custodian, internal adjustments within its system, or refreshes at Coinbase, noting that “on-chain movements do not mean that Strategy has sold their BTC.”
During periods of prevailing bearish sentiment, such large movements often trigger FUD, even though they are not necessarily selling activity. With Strategy’s holdings serving as a benchmark for the broader Bitcoin treasury model, such movements tend to spark concerns among market observers and investors.
Strategy’s official dashboard confirmed holdings remained steady at around 641,692 BTC, according to BitcoinTreasuries. The company has adhered to its long-term strategy of treating BTC as a primary treasury reserve asset since 2020, consistently adding to its stash during market dips.
Saylor also addressed the widespread speculation on X, stating that there was no truth to claims of a sale. He further told CNBC in an interview that the Strategy is accelerating purchases, with more acquisitions to be announced on Monday. “We are buying quite a lot,” he said, describing recent price levels as a strong base.
The Strategy CEO also expressed optimism about Bitcoin’s trajectory, describing the current price levels as a strong base and predicting the cryptocurrency will rally strongly from here. He forecast that Bitcoin would outperform traditional assets such as gold and the S&P 500 by the end of 2025.
Strategy’s class A stock MSTR saw a 4.2% decline on Friday as Bitcoin briefly declined below $95,000 before bouncing back to $96,500 at the time of publication.
EUR/USD clings to 1.1600 despite weekly pullback on trimmed Fed Cut bets
The EUR/USD ended Friday with losses of 0.10% but the week finished on a higher note up 0.51% as risk appetite deteriorated amid growing speculation the Federal Reserve would pause its easing cycle next month. Nevertheless, the pair closed above the 1.1600 figure, paving the way for further upside.
Euro ends slightly lower Friday but posts weekly gains, supported by mixed Fed signals and steady Eurozone growth
Since Wednesday, the majority of Federal Reserve officials remained hawkish. Regional Fed bank presidents, led by Beth Hammack, Raphael Bostic, Alberto Musalem, Susan Collins, Neel Kashkari and Jeffrey Schmid favored a modestly restrictive monetary policy,
On the dovish front lie Fed Governor Stephen Miran, San Francisco Fed’s Mary Daly, or even Governors Christopher Waller and Michelle Bowman, who said the labor market is deteriorating.
In the neutral stance lie the Fed Chair Jerome Powell and New York Fed John Williams. However, the Fed Chair Powell revealed that December’s cut was not a a foregone conclusion, keeping his options open amid the lack of economic data.
Money market had priced in a 56% chance for a 25-basis points rate cut, down from around 70% a year ago, revealed Prime Market Interest Rate Probability tool.
In Europe, data revealed that the economy grew 0.2% on a quarterly basis, in Q3. The Gross Domestic Product (GDP) year-over-year (YoY) was upwardly revised from 1.3% to 1.4%.
Daily market movers: Euro’s gave back gains on Fed’s hawkish comments
- The US Dollar Index (DXY), which tracks the performance of the buck’s value against other six currencies, rose a modest 0.08% at 99.31 as of writing.
- On Friday, Federal Reserve’s Governor Stephen Miran and Kansas City Fed President Jeffrey Schmid, crossed thew wires. The former doubled down on his dovish stance, arguing that recent data “should make the Fed more dovish, not less,” and warning that policymakers risk making mistakes if they rely too heavily on backward-looking indicators.
- Conversely, Schmid reiterated the reasoning behind his dissent against the latest rate cut, saying: “My rationale for dissenting against the rate cut at the last meeting continues to guide my thinking heading into December.” He added that he views the current stance of monetary policy as “only modestly restrictive,” which he believes is appropriate.
EUR/USD technical outlook: Holds firm at around 1.1600
EUR/USD maintain a bearish tone with buyers unable to decisively breach the 50-day Simple Moving Average (SMA) at 1.1659. Short-term momentum has improved, with the Relative Strength Index (RSI) ticking higher and signaling strengthening bullish pressure. A decisive break above the 50-day SMA would expose the 1.1700 level.
Conversely if EUR/USD tumbles below 1.1600 would put immediate support at the 20-day SMA near 1.1583, followed by 1.1500. A breach of those levels would expose August 1 cycle low of 1.1391 as the next bearish target.
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
BlackRock expands tokenized US Treasuries fund to BNB Chain
BlackRock’s tokenized fund BUIDL has expanded to the BNB Chain, accompanied by a new share class and its acceptance as an off-exchange collateral for trading on Binance.
BUIDL expands to BNB Chain following Binance integration
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), currently the largest tokenized real-world asset on the market, has expanded to the BNB Chain, according to a statement on Friday.
The move is supported by tokenization platform Securitize and cross-chain interoperability protocol Wormhole.
The launch marks another step in BlackRock’s ongoing adoption of blockchain-based infrastructure. By bringing BUIDL to BNB Chain, the asset manager widens the fund’s accessibility to onchain participants while maintaining its regulated structure.
“BNB Chain is designed for scalable, low-cost, and secure financial applications, and we’re excited to welcome BUIDL to our ecosystem,” said Sarah Wong, Head of Business Development at BNB Chain.
In a related development, Securitize and Binance announced that BUIDL will now be accepted as off-exchange collateral for trading on Binance. The arrangement allows eligible institutional clients to use BUIDL shares to secure trading positions without holding assets directly on the exchange.
“By enabling BUIDL to operate as collateral across leading digital market infrastructure, we’re helping bring foundational elements of traditional finance into the onchain finance arena,” said Robbie Mitchnick, Global Head of Digital Assets at BlackRock.
BUIDL is already available across several major blockchain networks, including Arbitrum, Aptos, Avalanche, Ethereum, Optimism, Polygon, and Solana.
“BUIDL’s expansion to BNB Chain and its use as collateral on Binance further extends its reach and utility,” said Carlos Domingo, Co-founder and CEO of Securitize.
Launched in partnership with Securitize in 2024, BUIDL is BlackRock’s first tokenized fund on a public blockchain, providing qualified investors with exposure to US Dollar yields.
BUIDL has grown to a market capitalization of $2.3 billion, according to data from rwa.xyz.
BNB is up nearly 1% following the announcement amid a broader decline across the crypto market.
Bitcoin’s correlation with NASDAQ stronger during market downturns
Bitcoin (BTC) has maintained its strong correlation with the NASDAQ-100 index. However, recent price action shows the top crypto only follows the index during periods of price declines.
“When equities rally, BTC’s reaction is muted. When they sell off, BTC tends to move more sharply in the same direction,” noted crypto trading firm Wintermute in a Thursday report.
The relationship is evident in the performance skew between BTC and the NASDAQ. While their correlation remains strong at 0.8, the skew has been largely negative, indicating Bitcoin maintains its high-beta characteristics, “but only when it cuts the wrong way,” the report states.
Although asymmetry between both assets is tightening, the number of days with positive skew versus the NASDAQ-100 has hit its lowest level on a 365-day rolling basis since the 2022 bear market.
Why the trend accelerated in 2025
Wintermute highlighted that one potential reason for the occurrence is a shift in institutional and retail attention toward equities. “For much of 2025, the narrative capital that usually circulates within crypto, new token launches, infrastructure upgrades, fresh retail participation, has instead rotated toward equities,” Wintermute wrote.
The market maker noted that the NASDAQ-100 has attracted much of the rising US Dollar risk appetite in recent months, rather than the crypto market. Bitcoin’s 18% loss vs the NASDAQ-100’s 3.7% gain since the Federal Reserve (Fed) began easing rates on September 17 aligns with the thesis.
“It reacts as a ‘high-beta tail’ of macro risk rather than a standalone narrative, the downside beta remains, the upside narrative premium does not,” the report states.
Wintermute added that reduced ETF inflows, plateaued stablecoin issuance and compressed market depth have further expanded its performance skew.
The firm noted that periods of strong negative skew are mainly evident during bearish cycles and market bottoms. However, Bitcoin has remained closer to all-time highs despite the negative skew.
Wintermute concluded that the current dynamic suggests Bitcoin investors are exhausted.
Bitcoin has declined below the $100,000 key level and is trading around $95,000, down 3.5% over the past 24 hours at the time of publication on Friday.
Dow Jones Industrial Average lags as AI stocks recover and data release delays weigh
The Dow Jones Industrial Average (DJIA) lagged behind its major index peers on Friday, backsliding nearly 600 points at its lowest before staging a half-hearted recovery, trimming the day’s losses to around 150 points. The AI-focused tech sector is recovering from mid-week losses that continue to plague the steeply overinvested market segment. However, a recent bump in investment into the financial and building materials sectors is seeing a fresh drawdown as traders pile back into their preferred AI bets.
Overweight valuations remain a weak point in the ongoing AI tech rally. Cloud computing services providers and chip producers continue to be the winning shovel-sellers in the AI craze, and investors are beginning to grow leery of the increasingly circular AI space. Major market players spend most of their time writing out cheques for multi-billion dollar deals to invest in each other, and balance sheet wonks are getting increasingly agitated at how fast and loose many AI companies are being in how they classify spending investors’ money as “capex”.
With the longest US federal government shutdown ever now over, at least until the end of January, investors are waiting for word on when federal agencies will resume publishing official labor and inflation figures. Markets are expecting that September’s long-delayed Nonfarm Payrolls (NFP) jobs report will be released next week, however, some traders remain perplexed by the White House’s ambiguous warning that October’s jobs and inflation data may never be released at all.
Dow Jones daily chart
Dow Jones FAQs
The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.
Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.
Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.
There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.
Fed’s Miran: The change in border policy is disinflationary
Federal Reserve (Fed) governor Stephen Miran spoke at a Fox Business interview on Friday, stating that monetary policy should be forward-looking and that wage gains have moderated.
Key takeaways
The Fed buying gold is not consistent with its mandate.
The change in border policy is disinflationary.
Monetary policy should be forward-looking.
It’s a mistake to let the job market get softer.
Wage gains have moderated.
Shelter inflation points to weakening price pressures.
It’s a mistake to make policy on backward-looking data.
The data we’ve gotten since September has been dovish.
The data should make the Fed more dovish, not less.
Data supports rate cuts.”
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.18% | 0.02% | -0.02% | -0.14% | -0.42% | 0.13% | |
| EUR | -0.13% | 0.05% | -0.13% | -0.15% | -0.27% | -0.55% | -0.01% | |
| GBP | -0.18% | -0.05% | -0.18% | -0.20% | -0.31% | -0.60% | -0.06% | |
| JPY | -0.02% | 0.13% | 0.18% | -0.01% | -0.14% | -0.44% | 0.12% | |
| CAD | 0.02% | 0.15% | 0.20% | 0.00% | -0.13% | -0.40% | 0.13% | |
| AUD | 0.14% | 0.27% | 0.31% | 0.14% | 0.13% | -0.29% | 0.25% | |
| NZD | 0.42% | 0.55% | 0.60% | 0.44% | 0.40% | 0.29% | 0.55% | |
| CHF | -0.13% | 0.00% | 0.06% | -0.12% | -0.13% | -0.25% | -0.55% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Gold plunges below $4,100 as hawkish Fed rhetoric trims December rate cut bets
Gold (XAU/USD) tumbles nearly 2% on Friday, yet it has recovered after reaching a daily low of $4,032 on growing speculation that the Federal Reserve (Fed) might pause its easing cycle as most officials struck a hawkish message.
Bullion prices fell sharply during the day, but at the time of writing, XAU/USD trades beneath $4,100, down 1.72%.
XAU/USD slides nearly 2% as policymakers push back on easing expectations and traders reassess odds of a December cut
Money markets trimmed their bets for the December meeting from 72% a week ago to about a 50% chance, with most officials worried about inflation despite acknowledging the softness in the labor market.
The Kansas City Fed’s Jeffrey Schmid said, “inflation is too hot,” and added that policy is where it should be. In the last meeting, he was one of the two dissenters with Fed Governor Stephen Miran eyeing 50 bps of cuts, while Schmid opted to hold rates unchanged.
Even though the largest government shutdown may cause economic data to flow, the Bureau of Labor Statistics (BLS) has not released a statement with tentative dates of data releases. On its website, it reads that they “will announce revised news release dates on this page as they become available.”
Traders remain hopeful that fresh data will indicate that further easing is needed due to the deterioration of the US economy.
As of writing, US Treasury yields are edging up, while the Greenback trims some of its Thursday’s losses that pushed the US Dollar Index (DXY) far from 100.00, reaching a weekly low of 98.99.
Daily market movers: Gold tumbles on traders booking profits, elevated yields
- The US Dollar Index (DXY), which tracks the performance of the buck’s value against six other currencies, rose a modest 0.08% at 99.31 as of writing.
- Conversely, US Treasury yields are rising, with the 10-year US Treasury note up two and a half basis points to 4.10%. US real yields — which correlate inversely to Gold prices — are also surging nearly three bps to 1.862%.
- Fed Governor Stephen Miran insisted on his uber-dovish rhetoric, saying that the data should make the Fed more dovish, not less, and added that it is a mistake to make policy on past data.
- Jeffrey Schmid said, “I view the current stance of monetary policy as being only modestly restrictive, which is about where I think it should be.”
Technical outlook: Gold plummets on volatile session below $4,100
Gold’s uptrend remains in place despite diving to a four-day low of $4,032, because it has recovered toward $4,100. Although ending the day above the latter is good, it paves the way for consolidation within the $4,100-$4,200 area.
On the other hand, if XAU/USD stays below $4,100, traders could opt for retesting for the second time in the day the 20-day Simple Moving Average (SMA) at $4,064, ahead of challenging the October 28 low near $3,886.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.