U.S. stocks experienced an uptick in early trading on Wednesday, highlighted by gold surpassing $4,000 and Bitcoin making a push to break above $123,000.
Summary
- Stocks saw modest gains bolstered by investor optimism regarding the Federal Reserve’s meeting minutes.
- Gold continued its ascent beyond $4,000, while Bitcoin rebounded past $123,000 after dipping to $121,300.
- Experts anticipate a stock rally before encountering a peak, with forecasts suggesting Bitcoin may exceed $135,000 by 2025.
The S&P 500 rose by 0.4%, eyeing new gains after Tuesday’s downturn, while the Nasdaq Composite climbed 0.7% thanks to Nvidia’s stock performance.
In addition, the Dow Jones Industrial Average gained almost 80 points early on, reflecting a positive sentiment throughout Wall Street.
Market News: Focus on FOMC Minutes
Today’s agenda includes the release of the Federal Open Market Committee meeting minutes, generating keen interest among investors.
The minutes will be available at 2:00 p.m. ET. Investors will be keen to discern details from the September meeting and the decision to lower rates. Anticipation of increased volatility suggests a potential rise in prices fueled by optimism.
Gold Surges Above $4,000, Bitcoin Reclaims Essential Support
Despite recent price divergence, the outlook for both gold and Bitcoin (BTC) remains notably bullish.
The market pullback observed on October 7 coincided with a general market slump as the U.S. dollar strengthened to 98.91.
Typically, a rising DXY exerts pressure on Bitcoin and gold, as increased liquidity constraints and higher real yields amplify selling pressure. Nevertheless, the safe-haven appeal has bolstered both assets.
Analysts predict a BTC rally in the upcoming months, setting sights on $135,000 as anticipation grows for a possible double rate cut by the Fed at future meetings in October and December.
“There’s no stopping the price of gold for the moment,” noted economist Mohamed El-Erian. “Having risen over 50% this year alone, it has more than doubled in the past two years.”
Regarding the reasons behind gold prices soaring above $4,060 per ounce, the economist elaborated:
“Consistent purchases by foreign central banks are being complemented by increased allocations from institutional and retail investors, coupled with a more volatile speculative atmosphere.”
