Gold price is seeing new momentum with prices back above $1,850. Some analysts say it could be receiving support as volatility hammers cryptocurrencies. Ipek Ozkardeskaya, a senior analyst at Swissquote, said the yellow metal’s rally coincided with the breakdown in bitcoin. The digital currency’s selloff took off after Elon Musk tweeted that Tesla would no longer accept bitcoin as payment.
Kitco News/Neils Christensen
Gold price on its way to $2,000 as bitcoin stumbles – analysts
The gold market is seeing new momentum with prices back above $1,850 and the 200-day moving average. According to some analysts, the yellow metal could be receiving support as volatility hammers cryptocurrencies.
For most of the year, analysts have noted that soaring bitcoin prices have taken some luster away from gold as investors look for safe-haven assets and hedges against rising inflation fears. However, the table seems to have turned as bitcoin prices have fallen nearly 34% from last month’s all-time highs of around $65,000 a token.
Bitcoin last traded around $43,000 a token, down 1.5% on the day. Meanwhile, June gold futures last traded at $1,866 an ounce, roughly unchanged on the day.
Ipek Ozkardeskaya, senior analyst at Swissquote, noted that gold’s rally coincided with the breakdown in bitcoin. The digital currency’s selloff picked up speed after Tesla CEO Elon Musk announced on Twitter that his company would no longer accept bitcoin as payment for its electric vehicles. He raised concerns about bitcoin’s environmental impact as mining the cryptocurrency is energy-intensive.
Since his initial tweet, Musk has sown more confusion in the marketplace. He initially implied that Telsa sold all its bitcoin holdings and then said it hasn’t. Tuesday, Musk even toyed with the idea of his other company SpaceX launching its own cryptocurrency.
Some analysts have said that the renewed volatility in bitcoin is turning some investors off, and gold has once again become an attractive and stable safe-haven asset.
Keeping reading, here.
Fox Business/Ken Martin
Stock futures decline ahead of Fed minutes, retail earnings
U.S. equity futures pointed early Wednesday to continued selling, adding to losses from the previous session.
The main futures indexes suggested a decline of 0.5% when trading begins on Wall Street.
Investors were waiting for the release of minutes from the latest Federal Reserve policy setting meeting.
The retail earnings parade continues Wednesday, with Lowe’s, Target, and T.J. Maxx parent TJX Companies reporting ahead of the opening bell, and L Brands and Shoe Carnival posting after the close of trading. The afternoon will also bring results from computer networking giant and Dow member Cisco Systems.
In Asia, Japan’s benchmark Nikkei 225 fell 1.3% and China’s Shanghai Composite slipped 0.5%. The Hong Kong market was closed.
In Europe, London’s FTSE declined 0.8%, Germany’s DAX fell 1% and France’s CAC was down 0.8%.
Stocks closed lower on Wall Street as a late-afternoon sell-off in technology companies helped nudge stock indexes into the red for a second straight day.
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Yahoo! Finance/Myles Udland
Big money investors suggest the cycle has peaked
As first quarter earnings season wraps up, it is starting to seem like a distinct phase of this recovery is coming to a close.
Namely, the most optimistic days about economic growth, corporate earnings, and how willing investors should be to capture the gains from these trends appear to be passing us by.
In its latest global fund managers’ survey, strategists at Bank of America Global Research find that several indicators of the economic cycle pulled back in April after rising sharply through the spring.
And while all of these measures are still high by historical standards, against the backdrop of strategists calling for economic growth to peak and earnings multiples to contract, the signs are starting to add up that we’re shifting into a new gear in this recovery. A gear in which fewer people are certain than just about everything is going to get better from here.
The first chart of BofA’s note that stood out that the net percentage of investors expecting a stronger economy in the next 12 months fell to 84% in May from 90% last month. The net percentage is the difference between those who think the economy will be stronger and those who think the economy will be weaker in a year.
Read the full story, here.