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Gold and Bitcoin on the Move

Published 2022-12-14, 07:27 a/m
XAU/USD
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DX
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GC
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BTC/USD
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Gold

Gold thoroughly enjoyed the gains on the back of the dollar index's weakness, which is sitting near the five and half month low. Traders are more optimistic about gold prices as there are fewer chances for the dollar index to score more gains from here onwards.

The reason is that the Fed's tools have worked in fighting inflation, and now the time has come for the Fed to scale back on its efforts to fight inflation. This could make the dollar index weaker, and that could keep gold prices firmly above the 1,800 price mark.

This price level is highly important for traders as they know that if the price is going to move higher, gold traders must cement the support of 1,800 for higher highs.

Bitcoin

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

The price could move higher, and we could see the price moving above 20K before the year's end if the current momentum continues. The one major challenge for the price action is its 50-day SMA, whose price may break today. The move above this moving average could indicate more power shifting to the bulls.

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