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Market Watch: Safe haven gold is up, Bitcoin & other cryptos plummet

Yesterday, Tuesday, gold reached $1,875.10 per ounce, the highest since January, 29. At the time of writing, gold is trading around 1868.44 per ounce. The increase represents an 11% rise from its March lows.

The yellow metal’s rise – the highest in recent months since the start of the year – could be related to the latest coronavirus outbreaks in Asia, as well as Treasury yields, the latest inflation data, and a weak dollar.

The Federal Reserve (Fed) April meeting minutes are slated to be released today, Wednesday. They could shed light on rising prices, the new direction of the US monetary policy and could signal a possible timetable for the gradual withdrawal of support for the economy. This data is also likely to affect the price of the inflation safe haven, gold as well as the US dollar. Traders are likely to keep these two assets under their radar.

As for oil prices, WTI crude oil fell to $64.70 a barrel yesterday, possibly due to increased supply from Iran. Today, the Energy Information Administration’s (EIA) crude stock change indicator is scheduled to be released. The forecast is for 0.040M versus the current -0.426M.

Bitcoin and other cryptocurrencies extended losses after the People’s Bank of China restated that digital assets cannot be used as a form of payment. Bitcoin’s dive below $40,000 was initially sparked by Elon Musk’s Twitter hint that Tesla could be selling the cryptocurrency due to environmental concerns about its mining.

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