Bitcoin
continues to consolidate in the $102,000 to $108,000 range, while gold has dropped by 2% today, approximately 7% from its record high. Meanwhile, the Nasdaq 100 has hit new all-time highs.
Several U.S. macroeconomic data points from Friday morning—though nearly two months old—could have contributed to a mildly negative sentiment surrounding BTC and gold. Personal income in May decreased by 0.4%, falling short of the expected rise of 0.3%. Personal spending for the month recorded a decline of 0.1%, missing the forecast of a 0.1% increase.
Perhaps more significantly for markets, the core PCE price index in the U.S., which excludes volatile food and energy prices, increased by 0.2% in May versus an expected growth of 0.1%. Year-over-year, core PCE prices rose 2.7% against an expectation of 2.6%.
This data bolsters the perspective that the economy may be moving toward stagflation. A noted gold advocate remarked: “Traders continue to sell gold even though this morning’s release of weak economic data and stronger-than-expected inflation readings pushed the dollar index to new lows. Stagflation and a declining dollar are bullish for gold, regardless of any superficial trade agreements.”
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