The trade: how are geopolitical tensions impacting gold, Bitcoin and equity markets?
Explore how Russia-Ukraine developments and Middle East tensions are driving market volatility, impacting gold prices, the Nasdaq, Bitcoin and the Australian dollar.
(AI video summary)
This video was created on 19 March for IG audiences by ausbiz.
Geopolitical influences on market trends
Recent geopolitical developments have caught the attention of traders worldwide. Russian President Vladimir Putin's decision to temporarily halt attacks on Ukrainian energy facilities, despite not endorsing a full ceasefire, and Israeli airstrikes on Gaza have disrupted relative calm in the region. These events have heightened market volatility, impacting global energy prices and investor sentiment.
US Tech 100's response to currency fluctuations
The US Tech 100 has experienced a short-term bounce, but technical indicators suggest caution. The index remains below a critical resistance level, the 200-day moving average (MA), indicating potential challenges for sustained upward momentum. Traders are advised to watch for short covering rallies, which may offer brief opportunities amidst prevailing bearish sentiments.
Additionally, the unusual scenario of both the United States (US) dollar and equities trading lower has affected currency markets. The Australian dollar has shown strength against the US dollar, breaking through resistance levels and approaching its 200-day MA. This movement suggests a potential correction, but traders should be alert for signs of exhaustion.
Gold and bitcoin technical trends
Gold's recent rally has taken it to significant technical levels, with prices breaching the $3000 mark. The metal is testing a bullish trend channel, and traders should watch for potential pullbacks, even as long-term prospects remain positive.
Bitcoin, often referred to as digital gold, has also seen a bounce from recent lows. However, it has struggled to sustain gains above its 200-day MA. For Bitcoin to confirm a bullish reversal, it must break through key resistance levels between $92,000 and $95,000. Until then, traders should be prepared for continued volatility as the cryptocurrency market navigates its current correction phase.
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