3 hours ago
Major financial institutions have been raising their gold price forecasts as the precious metal’s price benefits from growing trade war fears and central banks` accumulations. This week, strategists at both Citi and UBS issued increased gold price forecasts, anticipating the precious metal’s bull run will continue as markets are pressured by geopolitical tensions and economic uncertainties. Gold-backed cryptocurrencies have been benefiting from this trend, with tokens like PAXG and XAUT seeing performance in line with that of the precious metal. These tokens, backed by physical gold stored in vaults, have been outperforming the wider cryptocurrency market amid the uncertainty. Citi has adjusted its short-term gold price target to $3,000 per ounce and increased its average forecast for the year to $2,900, up from $2,800, Investing.com reports. Behind its hike were not only the factors cited above but also global growth concerns expected to drive demand for the precious metal. Meanwhile, UBS hiked its 12-month gold price target to $3,000 per ounce, up from $2,850. The precious metal has already breached the latter, currently trading at $2,860 after rising about 9% year-to-date. UBS strategists led by Mark Haefele said in a note that gold’s “enduring appeal as a store of value and hedge against uncertainty has again proven itself.” Meanwhile, Citi’s note points to “trade wars and geopolitical tensions reinforcing the reserve diversification/de-dollarization trend and supporting emerging market (EM) official sector gold demand.”Read more: Gold-Backed Cryptocurrencies Surge as Precious Metal Hits Record Amid Trade War Worry
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Markets Gold Paxg Xaut
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Emergence of Memecoins on Solana Raises Concerns About Oversaturation Among Cryptocurrencies
The cryptocurrency market is witnessing an unprecedented influx of new tokens, raising questions about sustainability and investor interest. The surge of over 10.99 million unique digital assets highlights an unparalleled CoinDesk
Chainlink Price Could Start ‘New Bull Rally’ – Here’s The Level To Watch
The Chainlink price was one of the several victims of the bearish pressure that swept the entire crypto market at the start of last week. The altcoin’s value fell to $17 — for the first time since late November 2024 — in almost a single move on Monday morning. Chainlink Price Overview The price of Bitcoin dropped to $92,000 after news of US President Donald Trump’s trade tariffs sparked fears of retaliatory actions and a potential trade war. Interestingly, Bitcoin’s price plunge was relatively less significant than that of the altcoin market, with large-cap assets like Ethereum falling by nearly 30% in one swoop. Specifically, the Chainlink price kicked off the week with a 32% slump, succumbing to the bearish pressure triggered by the US trade tariffs. As of this writing, the LINK token has recovered above the $18 mark despite a 1.4% price decline in the past 24 hours. Related Reading: Ethereum Outflows On Derivative Exchanges Hit Record Lows: What It Means for ETH Although the LINK price looks set for a bullish recovery, there seems to be a lull in its movement over the past few days. This sluggishness may be somehow connected to a crucial resistance level, which could prove pivotal to the start of a fresh bull run. Here’s Why $23.76 Is Crucial Prominent crypto trader Ali Martinez took to the X platform to share a significant level that could be crucial to the long-term health of the Chainlink price. This analysis is based on the average cost basis of several LINK investors. In cost-basis analysis, the ability of a level to act as support or resistance depends on the total amount of coins last acquired by investors in the region. In the chart below, the size of the dot represents and directly corresponds to the number of LINK tokens purchased within a price bracket. Recent data from IntoTheBlock shows that around 96,760 investors bought approximately 110.43 million Chainlink tokens within the $20.96 – $26.25 price range — at an average price of $23.78. The high purchasing activity has led to the formation of a supply barrier within this price region. The $23.78 region acts as a resistance zone because of the elevated number of investors with their cost basis in and around it. This level has the potential to witness significant selling pressure from investors wanting to sell their tokens after returning to a breakeven point, thereby hindering further price increases. This implies the potential supply of LINK tokens could overwhelm the buying demand within the $20.96 – $26.25 bracket. According to Martinez, a successful breach above the $23.78 level could set the stage for a new bull rally for the Chainlink price. Related Reading: Bitcoin Price Attempts a Comeback: Can the Recovery Hold? Featured image from Unsplash, chart from TradingView CoinDesk
