Gold - Gold is set to beat Bitcoin in 2022
Once again, we reiterate our long-term bullishness in gold as it is on a track to be one of the best-performing assets of 2022, beating Bitcoin and U.S. stock market indices like NDX and SPX. Since the start of 2022, gold is up approximately 2.5% and holding up relatively well in the current market conditions. Next week, the FED is set to increase interest rates, which will put further pressure on the U.S. economy and cryptocurrencies. Additionally, we expect this action to strengthen the USD. In our opinion, it may negatively impact the price of gold in the short term. Therefore, we are very cautious as the selloff in the stock market may spread out into the gold market as well. However, we do not foresee a substantial decline from the current price level. Instead, we view the current pricing as attractive. Our price targets stay at 2100 USD and 2300 USD.
Other factors
Other positive factors we look at are high inflation in the U.S. and the growing attractiveness of gold among central bankers as well as private investors.
Illustration 1.01
The picture shows the daily chart of NDX. Its performance since the start of 2022 is -23.14%, putting it in the technical bear market.
Technical analysis - daily time frame
RSI is neutral. Stochastic is bearish. MACD is bullish but in bearish territory. DM+ and DM- are bearish. However, ADX suggests the presence of a neutral trend. Overall, the daily time frame is neutral.
Illustration 1.02
Illustration 1.02 shows the daily chart of Bitcoin. It can be observed that its performance since the start of 2022 is -36.05%, drawing a technical bear market.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. ADX contains a low value, which suggests that no trend is present. Overall, the weekly time frame is neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Other factors
Other positive factors we look at are high inflation in the U.S. and the growing attractiveness of gold among central bankers as well as private investors.
Illustration 1.01
The picture shows the daily chart of NDX. Its performance since the start of 2022 is -23.14%, putting it in the technical bear market.
Technical analysis - daily time frame
RSI is neutral. Stochastic is bearish. MACD is bullish but in bearish territory. DM+ and DM- are bearish. However, ADX suggests the presence of a neutral trend. Overall, the daily time frame is neutral.
Illustration 1.02
Illustration 1.02 shows the daily chart of Bitcoin. It can be observed that its performance since the start of 2022 is -36.05%, drawing a technical bear market.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. ADX contains a low value, which suggests that no trend is present. Overall, the weekly time frame is neutral.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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