The forthcoming United States election results cannot stop a fresh gold surge and one analyst also believes that Bitcoin is also due for fresh bullishness. Gold will gain irrespective of who wins the election and bitcoin will rise above $11,000.
In an interview with reporters on October 7, Frank Holmes, CEO of U.S. Global Investors, announced that he was betting on gold for bullishness by the end of 2021. He said:
“It’s love season. It’s the seasonality of two wedding seasons in India, it’s the season of lights of Diwali, then we have Christmas, and it peaks for Chinese New Year. It’s an auspicious time for the consumption of gold, and it’s most highly correlated with GDP per capita growth.”
Gold, just like bitcoin recorded highs in August before the plunge that came in line with the renewed strength in the USD currency index (DXY). The outcome of next month’s US election has the possibility of influencing the US dollar standing significantly. However, Holmes thinks that gold will be strong enough to shake off the results. He added:
“Some are betting on blue, some betting on red, and I’m betting on gold.”
According to previous reports, gold bug Peter Schiff painted a less-than-optimistic outlook for the dollar. He alleged that a Biden win would be the worst possible scenario. Holmes said that he was predicting a $4,000 price target for XAU/USD.
Brandt Analyzes Weekly, Daily Bitcoin Price
Bitcoin has already seen an inverse correlation with DXY, and it has managed to claw back its losses from earlier this summer. Volatile sideways trading has now mimicked the lack of any significant progress in gold with $11,000 proving slippery so far this October.
News that the payments giant Square have joined MicroStrategy in buying significant amounts of bitcoin helped the markets on October 8. But, BTC/USD encountered resistance at $10,940, which was the site of previous rejection in late September. For analysts, nonetheless, this move is a conspicuous sign of good things to come soon. Veteran trader Peter Brandt responded on Twitter:
“It is a major development that a global corporation is now putting $BTC onto its balance sheet. The weekly and daily charts [are] poised to flash a big buy signal.”
Discussing Square, analysts warned that ‘dashes’ of short-term bullish movement may remain just that. It will remain that way unless Bitcoin can overcome the $11,000 resistance.