US Dollar Slips Further, Gold Nudges Higher, Bitcoin Poised for a New ATH.The US dollar continues to weaken as US Treasury yields remain in a downtrend, benefiting both gold and Bitcoin. While gold steadily recovers from recent losses, Bitcoin is on the verge of setting a new all-time high (ATH).
US Treasury Yields and Dollar Outlook
The yield on the US 2-year government bond is approaching a two-month low, exerting downward pressure on the US dollar. The recent peak at 5.05% appears to be the high for this cycle, barring any unexpected hawkish moves from the Federal Reserve. As the market anticipates the Fed’s first rate cut, the dollar is likely to face further declines in the coming weeks. Currently, US 2-year yields have recorded six consecutive declines, moving into oversold territory, suggesting a minor retracement might occur before the downward trend resumes.
US 2-YEAR YIELDS
The dollar index (DXY) is also under significant pressure, trading below the 200-day simple moving average, the 38.2% Fibonacci retracement level, and recent trend support. The upcoming US Jobs Report could provide short-term relief for the greenback. However, in the medium term, the DXY might drift towards the 50% Fibonacci retracement at 103.44 and potentially test the early March low of 102.34. The index is currently oversold, indicating a need for consolidation before any further decline.
Gold’s Performance
Gold is attempting to break above the $2,360/oz level. A successful breach would position the precious metal above the last simple moving average, supporting a further upward movement. The price range of $2,280/oz to $2,450/oz is expected to hold in the short- to medium-term, providing a stable foundation for potential gains.
Bitcoin Nears New All-Time High
Bitcoin is nearing the crucial $72,000 level, driven by substantial spot ETF purchases. Over the past two sessions, spot ETF providers have acquired approximately $1.37 billion worth of Bitcoin, far outpacing the 450 Bitcoins mined daily. This heavy buying activity has brought Bitcoin close to its previous ATH of $73,778.
