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Bitcoin Holds Ground; Gold Remains Volatile

Published 08/31/2022, 03:39 AM
Updated 07/09/2023, 06:31 AM
GC
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BTC/USD
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Bitcoin is holding on to its ground, and its price is still hovering near the $20,000, which shows bulls are trying their best to hold the price level. ETH's price action has started to show more encouraging signs as the price of ETH has moved above the 50-day SMA, which means that the bulls may be ready to push the prices higher.

Gold

The precious metal is likely to remain highly volatile as traders will assess the health of the US labour market by looking at the US ADP number, and comments from the FOMC member Mester will also bring higher volatility. Gold prices are under threat, and the odds are high that we may see further weakness in the gold price in the coming days as the traders continue to factor odds of a Fed interest rate hike.

Risk

Recession risk is on traders' minds regarding the US economy, and traders continuously monitor this risk by looking at the US credit spreads. The current corporate spread levels only indicate a chance of 25% of a deep recession, but in reality, we believe that the odds are much higher. There is more than a 60% chance of the US economy falling into recession, given the number of layoffs being announced and hawkish monetary policy, which is prone to killing economic growth.

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