The clouds of uncertainty loom over markets as the pandemic continues. But should you be investing in cryptocurrencies, gold, or the forex market?
Let’s find out.
With many of us relying on digital products this year, the digital currency Bitcoin saw its prices going up. It saw a massive 80 % increase in prices, and it went up 4% last week. According to analysts, it doesn’t matter what the outcome of U.S. elections is; the BTC prices will rise. And news proves this prediction. PayPal added Bitcoin as a payment method in October, and Square bought Bitcoin as cash reserves. This will brush-off scams associated with Bitcoin, and many investors will dive deeper. Therefore, as an investor, it is favorable to hold long positions.
Unlike Bitcoin, Ethereum is having a hard time going up. Its prices are stuck below $400. According to analysis, it is unlikely that ETH will cross the $400 mark, as there is a bearish trend line, and the prices can go below $390. If ETH clears the $396 resistance level, the prices can go up.
With USD declining, the gold prices are going back and forth $1900 level. Investors need to pay attention to two things; one, the U.S. presidential elections, and other prices of USD.
At present, gold is a volatile market, but as the election result will come, there will be an ease in volatility. And when that happens, we can see a boost in gold prices.
USD and gold are inversely related to each other. If USD rises, the gold market declines. Although the gold price is falling, after the election on 3rd November, there is a chance that USD may rise. And when that happens, gold prices can decline further. But if USD declines, gold will surge up and may even reach $2000 or above it. According to stats, it’s better to go long on gold, but with precautions.
Although a feeble USD is affecting the forex market, it is not the only concern; U.S. elections, Brexit, and pandemic being other. Major pairs like EUR/USD, and GBP/USD, CHF/USD, AUD/USD will be impacted. The EUR/USD will see a decline in the coming days if the break below 1.16 happens. GBP/USD may also fall.
As a trader, if you want to take positions on USD pairs, it’s best to wait for the outcome of elections and then go long or short.
Other pairs like USD/JPY, GBP/JPY show a long-term bullish bias. EUR/GBP may rise because of weakening GBP with a high of 0.94630.