Going in November, one of the biggest news that everyone has their eyes on is the presidential elections. Whoever wins will decide the market trends for the last two months of 2020.
So what will the markets look like in November? Let’s find out.
The crypto market will likely surge up in November. Until now, Bitcoin has seen the largest cryptocurrency investment of 2020, with investment returns twice as much as Gold. Bitcoin gained 50% in the past nine months versus Gold’s 25% during a year when a global pandemic was going on. Many analysts think that when an extra flood of money comes, it usually sends prices up.
Although cryptocurrencies fell during September and October, the long-term sentiment remains bullish for the crypto market. There is a decline in the number of coins held in crypto exchanges. In the short-term, the market may see a drop in price because of the declining USD.
The gold prices will also be affected by U.S. elections. Gold started the month with a high of 1913. The volatility will continue in the first two weeks of November. This is because of the weak USD. The feebler USD was unable to boost the price of Gold last month, and many investors were uncertain.
From a trader’s perspective, it is wise to stand back and let the U.S. election happen before investing in the market. When the election result come in, we’ll get a clear picture of gold prices. According to short-term analysis, there seems to be a support-level between $1,848 and $1,837.
The wearying USD is also a concern for the forex market. Major pairs like GBP/USD, EUR/USD will be affected in November. According to market analysis, the EUR/USD is holding support at 1.16. This is because last Thursday, the European Central Bank hinted that it would ease the monetary policy. But as the lockdowns are starting to happen again, there is a chance of declining EUR/USD. The GBP/USD will likely fall because of Brexit and lockdown.
WTI and Brent
With the increasing coronavirus cases, crude oil will likely see a drop in prices. Market analysis suggests that WTI is holding a support level at $35, but if the prices go below $35, they will drop further to $32.
There was a rise in Brent’s price on Friday, but then it declined back again. As Europe prepares lockdown, it is unlikely that there will be a strong oil demand. The prices can drop below $35 or even at $30.