The biggest challenge to the gold price is the Fed outlook. With oil prices climbing higher, inflation could remain high enough for the Fed to keep rates on hold. The higher interest rates outlook is keeping the gold rallies limited in the short term.
But the recent bounce indicates that buyers remain active at the lower price levels. This support in gold could also emerge from the physical demand and buying by central banks. Gold may be a winner in times of financial stress but its next big move may hinge on a Fed policy signal and the movements in the US Treasury yields.
Bitcoin Recovers as Institutional Demand Improves
Bitcoin has also rallied after months of weak performance. The price climbed back above $66,000 after technology stocks rallied and investors returned to the riskier stocks. Bitcoin recently rallied from a low near $65,400 to near $66,300 to mark an intraday high.
The institutional demand has been strong in the recent rally. Spot Bitcoin ETFs in the United States saw several straight sessions of inflows. This draw of more than $650 million in the past trading days was a partial reversal of a period of heavy outflows earlier this year.