Gold price consolidates around $2,350-$2,360, Euro strengthens against USD, Bitcoin drops due to various factors

From Investing.com: 2024-07-05 04:34:00

The price of gold (XAU) consolidated around $2,350–$2,360 after a slight decline following a significant rise. Traders await the U.S. Nonfarm Payroll report to determine potential interest rate cuts, with expectations for a rate reduction in September increasing to 73%. Geopolitical tensions in the Middle East could provide additional bullish momentum for gold. Israeli PM Netanyahu announced that negotiations with Hamas on a hostage release deal will resume. Increased volatility is expected with the NFP report release at 12:30 p.m. UTC.

The euro (EUR) continued its ascent against the U.S. dollar (USD) as weak U.S. data and higher eurozone core inflation rates led to reduced expectations of ECB rate cuts. Traders anticipate the Fed to be more dovish than the ECB for the rest of the year, possibly supporting further EUR/USD gains. The upcoming U.S. Nonfarm Payroll report release at 12:30 p.m. UTC will be crucial in defining the pair’s movement, with strong NFP data potentially strengthening the USD. EUR/USD may correct lower if data surpasses expectations, but weak NFP numbers could push the pair higher.

Bitcoin (BTC) saw a 2% drop amid ETF liquidations triggered by the price falling below $60,000. The recent decline of 14% in BTC/USD was attributed to various factors, including profit-taking by investors and miners selling coins. Germany’s government transferring BTC to exchanges also contributed to negative sentiment. The breach of the $60,000 level led to a further sell-off, causing the price to drop by over 7% in a short period. Despite the current bearish pressure, economic conditions and a potential buy-the-dip strategy could prompt a quick recovery in Bitcoin’s price.



Read more at Investing.com: Gold Declines, Euro Rises as Traders Await NFP Data