Gold rises amid US debt fears – financial portal rejects end-of-year gold price forecast – economy

While the price of Bitcoin has risen in the first few days of October, the price of the precious metal gold has also risen in percentage terms as the US dollar and the country's 10-year Treasury yields have lost value over the past week. An ounce of fine gold exchanged for $1,760 per unit this weekend, up 1.32% since September 29th.

Gold is up more than 1% in the past week, the metal's rise driven by a soft dollar, fears of a US default, impending QE and the Fed's benchmark interest rate decisions

After the end of September, like clockwork, Bitcoin ( BTC ) and the crypto economic saw Billion funnels back in crypto markets. Today is the entire thing Crypto economy is worth around $2.23 trillion and BTC has $909 billion, or 41% of that total.

Gold, on the other hand, has been lackluster in terms of percentage gains, but the asset is up 1.3% over the past six days. Gold bugs, speculators and precious metals (PM) market analysts last week pointed to the soft dollar due to the surging price of the shiny yellow metal.

Last week, both the dollar index and U.S. Treasury yields decreased in value and PMs saw significant Requirement from other fiat currencies. In addition, market participants are worried about the Federal Reserve's moves as discussions about scaling back massive asset purchases every month and raising interest rates next year continue to rattle investors.

Furthermore, the USA has the money is running out, raise the Debt ceiling, or possibly default on payment has reinforced these market fears. Marc Chandler, chief market strategist at Bannockburn Global Forex, said investors cannot imagine the US defaulting on its debts.

“The tightening stance appears to have been the key factor driving the dollar higher in late September,” Chandler said noticed this weekend. “However, fiscal policy is the immediate focus, although investors appear to be seeing through it as many find it unthinkable that the US defaults on its debt,” the market strategist added.

On the other hand, analysts at schiffgold.com explain that “the [Federal Reserve] is clearly monetizing US debt” in a Research post called “[the] Fed absorbs $60 billion in 1- to 5-year U.S. Treasury bonds in September.

“The Fed has monetized a large percentage of bonds issued since January 2020. The focus is clearly on notes and bonds to limit long-term interest rates,” the Fed study published schiffgold.com details on October 1st. “The Fed can talk about tapering and even try to do so, but it will inevitably reverse course and add more than $120 to its balance sheet.” [trillion] a month.”

FX Empire rejects year-end gold price forecast

Despite last week's 1.3% increase, FX Empire called that his year-end forecast for gold was wrong. "[We're nixing] our gold forecast high of $2,401. We're wrong and not even close. Period," FX Empire noted sternly. Although there are still a few months left, FX Empire explains that it is irrational to believe that gold will reach $2,401 at this point in the game.

“Because we are quantitatively driven, the expectation that gold would even reach $2,000 by year-end, let alone $2,401, is completely outside of any rational range,” pointed out Mark Mead Baillie, author of FX Empire.

“Gold just started the fourth quarter by settling the week at $1,761 yesterday (Friday) (after settling at $1,758 on Thursday in the third quarter,” the author added. “The route to reach $2,401 in the remaining 63 trading days of the year therefore requires a 36.3% gain,” Baillie added. The FX Empire analyst continued:

Now, has such [a] percentage increase in the price of gold ever occurred within a 63-day stint before? Absolutely. Apparently there was the infamous run from 1979 to 1980, with a similar move in 1982; but it wasn't until 2009 that the price of gold rose again by at least the same percentage.

What do you think about gold's recent 1.3% price increase and FX Empire wiping out its year-end gold forecast? Let us know your thoughts on this topic in the comments below.

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