Gold prices are down and hit multi-week lows in early U.S. trading Thursday, following a batch of U.S. economic data that showed an uptick for producer inflation and solid retail sales. Both reports fall into the camp of the U.S. monetary policy hawks, and that’s bearish for the metals. December gold was last down USD$8.90 at USD$1,923.60.
In the short term, headline inflation continues to cool, but core inflation remains stubbornly high, and the Federal Reserve is near its cyclical peak. As the imminence of a US recession recedes, these developments give the Fed the opportunity and the obligation to keep rates higher for longer to fight inflation. This will keep real rates elevated, which combined with the currently strong Dollar creates headwinds capping gold prices below or at USD$2,000 to the end of this year on our estimates. Despite the ongoing summer slump in precious metals markets, gold prices are still up close to 5% for the year.
Gold miners’ pain may be bullion investors’ gain. The same forces that threaten to bankrupt mining companies paint a hugely bullish long-term picture for physical precious metals markets. It’s all about supply and demand. When gold and silver bull markets do resume in earnest, shares of well-positioned miners will undoubtedly go up as well. Some may even deliver explosive gains.
Bitcoin neared two-week high trading above USD$26,500 on Thursday. The move comes as the world’s largest cryptocurrency continued to move away from a recent three-month low. A strong break might lead to a USD$28,800 target signaling a major upswing. Shares of Cryptocurrency and Blockchain companies have risen as Bitcoin hits a two-week high.
Ethereum moved away from Tuesday ‘s six-month low, climbing back above USD$1,600 in the process. This latest rebound has increased the possibility of an upward cross, and should this happen, ETH will be trending closer to USD$1,700.
The top 200 altcoins traded mixed, with the winners outnumbering the losers, while most tokens traded within ±3% of Tuesday’s prices. VeThor Token (VTHO) was the standout token of the day with an increase of 57% after it was unexpectedly added to Coinbase. Other notable gainers include Storj (STORJ), Galxe (GAL), and Metal DAO (MTL), which increased 10.9%, 9.1%, and 8.3%, respectively. Astar (ASTR) was the biggest loser with a decline of 7.6%, followed by a loss of 5.5% for Akash Network (AKT) and Ribbon Finance (RBN).
“The bulls have stabilized prices now but have much more heavy lifting to do in the near term, to suggest a price uptrend can be started,” Wyckoff said. “The bears still have the overall near-term technical advantage as a price downtrend line remains in place on the daily chart.”
Crypto Project News
Asset Manager Franklin Templeton Joins Race for Spot Bitcoin ETF. According to filings submitted to the US Securities and Exchange Commission (SEC) today, asset management giant Franklin Templeton has filed an application for a spot Bitcoin ETF. The fund, which is named the Franklin Bitcoin ETF, is expected to be listed and traded on the Cboe BZX Exchange. Coinbase Custody Trust Company will serve as the custodian. Following companies including BlackRock, Fidelity, Invesco, and more, Franklin Templeton is another asset manager to join the race for a spot in Bitcoin ETF. Previously, the SEC delayed decisions on seven spot Bitcoin ETF applications.
PayPal is expanding its cryptocurrency services with the introduction of an “off-ramp” feature in addition to its existing “on-ramp” service. This new “off-ramp” service allows cryptocurrency wallet users in the United States to seamlessly convert their digital assets into U.S. dollars, which are then deposited into their PayPal balances. Users can utilize these funds for various financial activities, including shopping, sending money, saving, or transferring to their bank accounts or debit cards. PayPal’s move reflects the growing acceptance of cryptocurrencies within mainstream financial services, aiming to make digital assets more accessible and functional for its broad user base.
Visa Releases a Report Highlighting Solana’s Technical Advantages for Payment Business. Visa has published a research report titled “A deep dive on Solana, a high-performance blockchain network”. The report highlights Solana’s unique technical advantages, including high throughput through parallel processing, low and predictable transaction costs, and high resilience with many nodes and multi-validator clients. These factors collectively create a scalable blockchain platform with compelling value propositions for payments.
Three Arrows Co-Founders Zhu Su and Kyle Davies Banned from Business Activities in Singapore. Monetary Authority of Singapore (MAS) today issued prohibition orders against Zhu Su and Kyle Davies, co-founders of Three Arrows Capital. Due to contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR), the duo is prohibited from performing any regulated activity and from taking part in the management of, acting as a director of or becoming a substantial shareholder, of any capital market services firm under the SFA.
US Court Allows FTX to Sell Its Crypto Holdings; On Wednesday, Judge John Dorsey in the US Bankruptcy Court for the District of Delaware approved a motion filed by FTX, allowing the exchange to sell, stake, and hedge its crypto holdings to pay back its creditors. According to filings disclosed earlier this week, FTX held a diverse portfolio of crypto assets valued at USD$3.4 billion, including USD$1.16 billion in $SOL, USD$560 million in $BTC, USD$192 million in $ETH, and USD$119 million in $XRP. If FTX were to sell the assets, it would need to notify the U.S. Trustee’s office ten days in advance.
Deutsche Bank to hold crypto for institutional clients. Deutsche Bank has partnered with Swiss crypto firm Taurus to provide custody services for institutional clients’ cryptocurrencies and tokenised assets, Taurus said in a statement on Thursday. The partnership means Deutsche Bank will, for the first time, be able to hold a limited number of cryptocurrencies for its clients, as well as tokenised versions of traditional financial assets, a Deutsche Bank spokesperson said.
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