Gold and Bitcoin on the Move

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Gold

fully enjoyed gains on the back of weakness in , which sits near the five-and-a-half-month low. Traders are more bullish on gold prices as there is less chance of the dollar index recording more gains from now on.

The reason is that the Fed’s tools have worked in the fight against inflation, and now is the time for the Fed to scale back its efforts to fight inflation. This could weaken the dollar index, which could keep gold prices firmly above the 1800 price mark.

This price level is very important for traders because they know that if the price is going to rise gold traders need to cement the 1800 support for higher highs.

Bitcoin

also posted solid gains. Traders paid more attention to US CPI data than to what is happening with the FTX co-founder, who was finally arrested yesterday. There is no doubt that BTC prices are oversold regardless of what metric you look at when it comes to technical price analysis.

The price could rise and we could see the price move above 20,000 before the end of the year if the current momentum continues. The only major challenge for the price action is its 50-day SMA, which price may break today. Movement above this moving average could indicate a greater transfer of power to the bulls.

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