Gold and bitcoin await Powel

Since the beginning of the year, gold, silver and cryptocurrencies, which have been acting based on the steps taken by the US Federal Reserve (Fed), are expected to enter a new upward trend in the coming days. The Fed’s Open Market Committee is expected to raise interest rates by 0.25 percent at this meeting on May 1-2. However, the markets did not focus on the interest rate decision, but rather on the remarks of the Fed Chairman, Jerome Powell. Powell, who will speak to reporters after the meeting, is expected to announce that interest rates have been raised for the last time and that there will be no rate hikes in the next period.

Economists say that at least Powell can send messages that they are not planning an interest rate hike any time soon, given the cooling US economy. Economists point out that the smoke from the banking crisis, which started in the US and spread to Europe in the last month, continues to billow, signaling that Powell will inevitably have to deliver dovish messages.

THE RALLY HAS BEEN HALF

In fact, with the expectation that the Fed would have to pause raising interest rates with the onset of the banking crisis, gold rose to $2,045 in April, hitting a 13-month high, while Bitcoin, the leading cryptocurrency , rose to $30,500. . However, statements by Fed officials that the interest rate hike was not over yet caused this rally to be halted. With the onset of the banking crisis, depositors are concerned about the start of deposit outflows from small US banks, affecting the trend towards gold and cryptocurrencies.

Inflation risk remains on the agenda

While macroeconomic data released in the US last week caused uncertainty about the country’s economy to continue, investors were also confused. Although the US economy grew more slowly than expected at 1.1 percent in the first quarter of the year, basic personal consumption spending beat expectations with an annual increase of 4.6 percent in March. Inflation, which prompted the Fed to tighten monetary policy, continues to hold its high course. While US consumer inflation rose 0.1 percent monthly and 5 percent annually in March, remaining below market expectations, it also showed that the upper course continued.