Analysis: US Dollar Weakness and Interest Rate Expectation Repricing May Benefit Gold and Bitcoin

TechFlow news, August 05, BIT released market analysis stating that from a technical perspective, gold may be in a bottoming-out phase. The report also noted that its view differs from the current market consensus: although the bond market is still pricing in expectations of two Fed rate hikes within the year, it judges that there may be no rate hikes this year.

BIT believes that if the market gradually accepts this expectation, gold is expected to strengthen further driven by technical factors, diversification of US dollar reserves, and repricing of interest rate expectations. The report added that the weakening US dollar has prompted traders to lower rate hike expectations, and this change is also positive for gold and Bitcoin.