After hitting a one-year high of $2,050, gold corrected sharply to the downside on Friday, wiping out weekly gains in the process. Bitcoin, on the other hand, has risen above $ 30 thousand and continues to maintain this critical level for now. Growth data from China and PMI surveys from the US will be on investors’ radar next week due to the potential impact of gold and Bitcoin on the demand outlook.
China GDP and US Initial Jobless Claims to be released
On Tuesday, China’s economic agenda will include the first quarter Gross Domestic Product (GDP) growth figure, as well as the March Retail Sales data. According to market analyst Eren Şengezer, given the positive impact of the optimistic Chinese trade balance data on the gold price, gold can be expected to rise with the optimistic data and vice versa. Meanwhile, it is possible for Bitcoin to exhibit a similar move given its recent correlation with gold.
The US economic calendar will not include high-impact data releases. However, the weekly Initial Unemployment Claims data to be released on Thursday could trigger a short-lived response. The analyst states that a significant increase in demand could put pressure on the USD and a drop to 200,000 could cause gold to turn south.
Gold and Bitcoin market players will follow these developments
On Friday, S&P Global will release its preliminary Manufacturing and Services PMI surveys for April. Markets are increasingly worried about the economic slowdown in the US and therefore they think the Fed may reverse its policy. Therefore, the USD is likely to depreciate further if the PMI figures remain well below 50 and reveal the continued contraction in the private sector’s business activity. This, along with gold, is likely to support risk assets such as BTC.
Gold and Bitcoin market players will also closely follow the comments of Fed officials. That said, policymakers are likely to refrain from making any decisions beyond May, and last week’s market action shows that investors are more concerned about what may happen later in the year.
Technical view of gold price and gold forecast survey
Market analyst Eren Şengezer draws attention to the following levels in the technical picture of gold. With Friday’s pullback, gold is back in the ascending retracement channel from November, suggesting that the yellow metal has made a technical correction. Confirming this view, the Relative Strength Index (RSI) indicator on the daily chart has started to decline after touching 70 on Thursday.
On the downside, the midpoint of the ascending channel and the $1,980 / $1,990 zone, where the 20-day Simple Moving Average (SMA) sits, form the key support area. A daily close below this level could open the door for a long decline towards the next static support at $1,960 and the lower border of the $1,940 channel.
Static resistance seems to have formed at $2,040 after the move seen in the second half of the week. Above this level, $2,050 (the static level in March 2022) is aligned as the next resistance ahead of $2,070 (March 8, 2022, high). However, it is worth noting that gold price needs to stabilize in the upper half of the channel, confirming $2,000 as support to regain bullish momentum.
The FXStreet Forecast Survey points to a bullish trend in the near-term with the one-week average target aligned at $2,031. The one-month outlook remains slightly bullish, but the target in this timeframe is much closer to $2,000.
Bitcoin bulls beware: the next big hurdle!
cryptocoin.com As you can see from , the performance of Bitcoin (BTC) in the last period is nothing short of impressive. After breaking above the key $30,000 resistance level for the first time since June 2022, the digital currency continued to climb, posting a staggering 80% year-to-date gain, briefly breaking above $31,000.
This has happened despite significant uncertainty in the banking sector and wider financial markets. The fact that Bitcoin has managed to maintain its upward momentum in such challenging conditions is testament to its resilience, despite the persistent skepticism of some critics. The leading cryptocurrency has proven to be a viable investment option for many, and the market has reacted accordingly.
Popular crypto analyst Michael van de Poppe states in a tweet that investors should be prepared for some superficial corrections along the way. The digital currency has shown great strength, but there is always the possibility of setbacks and it is important to be prepared. According to the analyst, one of the key resistance points to watch out for is $31,700 – $32,000. This level has proven to be a hard nut to crack for Bitcoin in the past and could be a major hurdle to BTC’s upward momentum. With traders watching the market closely, the price may face some downside pressure at this level.
Bitcoin’s next level of resistance / Source: Michael van de PoppeAt the same time, the analyst states that $25,000 was previously seen as the ideal buying level. However, he expects this level to slide to $28,500 in the near future. When this happens, investors looking to enter the market at a discount should look to this level as a good entry point. Van de Poppe also emphasizes the importance of $29,700. This level is located just below the critical resistance of $31,700-$32,000 and could provide an important clue to Bitcoin’s upside potential.
