Caution dominates ahead of the core PCE inflation gauge.
Gold => The commodity rises above 1660
BTC/USD => The cryptocurrency holds over 19k
Meta => The stock trades 60% lower this year.
Gold awaits inflation data
Gold rose 0.25% yesterday, its third straight day of gains. The precious metal is set to rise 1.1% this week, snapping a three-week losing run. Gold has risen as treasury yields, and the US dollar has fallen lower. The precious metal shrugged off better than expected USD jobless claims and higher than forecast Q2 personal consumption expenditure data. Today, the dollar is on the rise as well as gold, as attention turns to the US core PCE, the Federal Reserve’s preferred measure of inflation. Hotter than expected inflation could drive hawkish Fed bets and pull gold lower.
Where next for the Nike share price?
Gold bounced off the low of 1615 and has risen above key support at 1660, which, combined with the bullish crossover on the MACD, keeps buyers optimistic for further gains. Buyers will look for a move above 1680, the 20 sma, and the July low to expose the 50 sma and falling trendline resistance at 1724. Meanwhile, should buyers fail to defend support at 1660, bears could push the price lower to test 1615, the 2022 low.
BTC/USD remains solid even as equities fall
While US stocks tumbled lower, Bitcoin and other cryptos again showed resilience by holding steady around 19,400, raising questions about crypto’s correlation with equities. While the correlation with tech stocks remains, it is not as marked as previously. The Nasdaq fell 2.8% yesterday. This suggests that Wall Street could consider that BTC/USD is bottoming out.
Crypto regulation continues to be a hot topic. The Commodity Futures Trading Commission (CFTC) highlighted the importance of regulation, saying it could boost the price. Could clear regulation be what is limiting the upside in cryptos?
Meta drops 4%. Here’s why.
Meta fell 4% in the previous session, falling to the lowest level since March 2020 after CEO Mark Zuckerberg laid out plans to slash jobs and restructure teams for the first time; this marks the first budget cut for the tech giant and signals an end to the rapid growth of previous years. Meta will freeze hiring, cut expenses and realign priorities resulting in a smaller Meta in 2023. Zuckerberg cited uncertainty and instability in the broader economy for these measures. Meta is heavily dependent on ad revenue, which is often the first cost to be cut in firms starting to tighten their belts. The stock trades 60% lower so far this year.
Support can be found at 130 (round number) and 123 (December ’18 low).
Resistance for the pair can be seen at 155 (July low) and 169 (20 sma).