2023-11-21 05:23

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose sharply on Tuesday, tracking a weaker dollar and Treasury yields as markets priced in no more rate hikes from the Federal Reserve, with the minutes of central bank’s recent meeting now due later in the day. Among industrial metals, copper prices sat on strong gains amid improving sentiment towards major importer China, while disruptions at major mines in Peru and Panama also pointed to tighter supplies. Gold has been on a tear in recent sessions, with prices once again trading just below the $2,000 an ounce level as the prospect of a pause in the Fed’s rate hike cycle pointed to easing pressure on the yellow metal. Spot gold rose 0.7% to $1,992.17 an ounce, while gold futures expiring in December rose 0.7% to $1,994.00 an ounce by 00:06 ET (05:06 GMT). Fed minutes awaited, but rate hikes seen no more Markets were now focused squarely on the minutes of the Fed’s October meeting, which were due later on Tuesday. While the central bank is expected to reiterate its stance on higher-for-longer rates, a slew of weak inflation and labor readings saw traders betting that the Fed had little room to push rates higher. Fed fund futures prices showed that traders were even pricing in the possibility that the Fed will begin trimming rates by as soon as March 2024. Still, the outlook for potentially lower interest rates bodes well for gold, given that it makes returns on the yellow metal appear more attractive. Weakness in the dollar- which sank to a 2-½ month low on Tuesday- also aided prices of the yellow metal, putting them close to the coveted $2,000 an ounce level. Copper rises on China hopes, tighter supplies Copper prices hit a two-month high on Tuesday, extending recent gains as optimism over more stimulus measures was complemented by growing fears of supply disruptions in Peru and Panama. Copper futures rose 0.2% to $3.8157 a pound. Chinese media reports said that the government was preparing more policy support for the country’s beleaguered property sector- which is a main driver of copper demand in the country. On the supply front, union workers at MMG Ltd's (HK:1208) Las Bambas mine in Peru- which is one of the biggest copper mines in the world- were preparing an indefinite strike from next week. In Panama, Reuters reported that Canadian miner First Quantum Minerals (OTC:FQVLF) was planning to carry out maintenance at its Cobre copper mine, effectively suspending production as coal supplies to the mines were blocked by protestors. The moves heralded some disruptions in global copper supplies, tightening markets at a time when demand for the red metal is expected to rise substantially amid growing interest in green energy. https://www.investing.com/news/commodities-news/gold-prices-rally-before-fed-minutes-copper-rises-on-tighter-supplies-3239638

2023-11-21 04:34

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies rose sharply on Tuesday as easing concerns over higher U.S. interest rates spurred heavy losses in the dollar, with focus now turning to the minutes of the Federal Reserve’s October meeting. Optimism over China also aided sentiment, as local media reports suggested that the government was planning to roll out more supportive measures for the beleaguered property sector. The Chinese yuan was among the best performers for the day, rising 0.5% to 7.1346 to the dollar- its strongest level since late-July. The currency was also supported by a series of stronger-than-expected daily midpoint fixes by the People’s Bank, as Beijing moved to quell more weakness in the currency. The Japanese yen benefited greatly from easing fears of U.S. interest rate hikes, rising 0.6% on Tuesday and extending a strong recovery from near 30-year lows. The currency was now at 147.45 to the dollar- its strongest level in three months. Strength in the yen saw traders dial down bets that Japanese authorities will need to intervene in currency markets. But the currency’s outlook remained weak in the face of a dovish Bank of Japan. The Taiwan dollar surged 0.9% on Tuesday, extending a rash of recent gains amid speculation that a pro-China party could take the lead in the upcoming general elections- a scenario that could result in easing tensions with the mainland. Other Asian currencies also advanced. The Australian dollar rose 0.5%, as Reserve Bank Governor Michele Bullock warned that sticky inflation remained a cause for concern, pushing up expectations that the bank was not done hiking interest rates. The South Korean won rose 0.3%, while the Indian rupee largely lagged its regional peers, moving little and remaining near record lows. Dollar at 2-½ month low, Fed minutes awaited The dollar index and dollar index futures fell 0.2% each in Asian trade, extending a rash of recent losses as traders grew more convinced that the Fed was done raising interest rates. The minutes of the Fed’s October meeting- where the central bank had kept rates on hold- were due later on Tuesday, and were expected to provide more cues on monetary policy. A slew of weak inflation and labor market readings over the past two weeks saw traders pricing in no more rate hikes from the Fed. Traders were also pricing in a 30% chance that the Fed could begin trimming rates by as soon as March 2024. But the central bank has given no such indication, and has reiterated that it will keep rates higher for longer to bring down inflation. Such a scenario is expected to limit any major gains in Asian markets. https://www.investing.com/news/forex-news/asia-fx-surges-as-dollar-plumbs-2-mth-low-before-fed-minutes-3239630

2023-11-21 04:16

Copyrighted Image by: Igor Faun In the face of evolving technology and innovation, Ark Investment Management's Cathie Wood has recently articulated a strong conviction in Bitcoin's potential as a deflationary buffer over the coming decade. Wood's forecast not only underscores her firm's optimistic stance on cryptocurrency but also predicts an extraordinary surge in Bitcoin's value, potentially exceeding $1 million. Wood's vision for Bitcoin extends beyond its monetary value; she anticipates the integration of artificial intelligence (AI) with Bitcoin will enable a new frontier of global-scale micro-tasking. This synergy between AI and cryptocurrency is expected to create unprecedented opportunities and applications across various industries. Ark Investment Management, led by Wood, is known for its focus on disruptive technologies and has been a vocal proponent of digital assets. The firm's bullish outlook on cryptocurrencies like Bitcoin reflects a broader belief in their long-term viability amid rapid technological change. In related news from Monday, PLAN, a financial entity regulated by Germany’s BaFin, announced strategic partnerships with BERENBERG Bank and U.S.-based Northern Trust (NASDAQ:NTRS) and Kraken Banks to bolster its international presence. PLAN's "Trident Strategy" integrates expertly crafted trading strategies, AI-powered automated trading, and the Schutz Shield for asset protection. This combination aims to support a risk-free profit model while paving the way for PLAN's goal to list on the London Stock Exchange by 2026 and establish a robust encrypted financial ecosystem worldwide. https://www.investing.com/news/cryptocurrency-news/cathie-wood-predicts-bitcoin-could-surpass-1-million-sees-deflation-hedge-93CH-3239624

2023-11-21 04:05

Copyrighted Image by: Shutterstock The cryptocurrency exchange Bittrex Global, known for serving an international customer base, has announced it will cease all trading activities by December 4. This decision comes on the heels of the bankruptcy of its US counterpart following a fine from the Securities and Exchange Commission (SEC) for violations of securities laws. Customers have been advised to refrain from making further deposits as there is a risk of permanent loss. The exchange has specified that funds can only be withdrawn in euros or other cryptocurrencies, excluding USD withdrawals. Once a significant player in the crypto market with a 23% share in 2018, Bittrex Global's decline has been attributed to the prolonged bear market in cryptocurrencies and increased regulatory pressure on companies facing legal actions within the industry. https://www.investing.com/news/cryptocurrency-news/bittrex-global-announces-shutdown-amid-regulatory-challenges-93CH-3239623

2023-11-21 02:53

The cryptocurrency market is witnessing a bearish phase for Litecoin (LTC), as signals indicate a potential downturn. After experiencing a 25% increase in the latter half of October, Litecoin has since dropped below the $70 threshold. The current market conditions and trading behaviors suggest that LTC might be heading towards a monthly low, with a risk of descending further to around $63. Technical analysis tools such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have shown a bearish crossover, reinforcing the negative outlook for Litecoin. These indicators are often used by traders to gauge market momentum and trend reversals, and their current readings are not in favor of LTC bulls. Moreover, the activities of Litecoin whale addresses are under scrutiny, as these large holders wield significant influence over the cryptocurrency's price movements. Currently holding approximately 25.65 million LTC, their buy and sell decisions are closely watched for hints of market direction. These whale addresses can trigger substantial price swings due to the size of their transactions. Another factor contributing to the precarious situation is the high Market Value to Realized Value (MVRV) ratio. This metric compares the market value of a cryptocurrency to its realized value, providing insight into whether it is overvalued or undervalued. A high MVRV ratio suggests that many investors are sitting on significant unrealized profits, which could lead to increased selling pressure if they decide to cash in on their gains. If LTC investors choose not to sell at this juncture and maintain their positions above $69, it might help prevent further losses and could lead to a period of sideways trading before any potential bullish momentum takes hold. However, the current tendency among holders to realize profits could pose additional challenges for Litecoin in the near term before any recovery can occur. https://www.investing.com/news/cryptocurrency-news/litecoin-struggles-as-investors-eye-profits-risking-further-declines-93CH-3239605

2023-11-21 02:22

The U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against the cryptocurrency exchange Kraken. The charges stem from allegations that Kraken's staking services have been operating as an unregistered securities exchange. This enforcement action has implications for several cryptocurrencies, including Solana, Cardano, and Algorand. ETF specialists at Bloomberg noted the similarities between this case and previous actions taken by the SEC against other cryptocurrency exchanges. The move by the SEC signals a continued push to bring crypto-related services under regulatory scrutiny and ensure compliance with existing securities laws. In a related development, Binance, another major player in the cryptocurrency market, is reportedly nearing a settlement with the U.S. Department of Justice (DOJ). The settlement could amount to $4 billion, aligning with CEO Changpeng Zhao's frequent allusions to the number "4." This potential agreement would likely involve a deferred prosecution arrangement, potentially resolving the long-standing investigation into Binance's alleged involvement in fraud and money laundering activities. These legal challenges come at a time when cryptocurrency exchanges are facing increased regulatory pressure globally. Both cases underscore the evolving landscape of digital asset regulation and the steps that authorities are taking to address concerns over illegal activities and investor protection in the rapidly growing crypto market. https://www.investing.com/news/cryptocurrency-news/binance-eyes-4-billion-settlement-with-us-doj-sec-sues-kraken-93CH-3239597