Cryptos, stocks, and gold trend higher as markets look to recover

Bitcoin is rising

Data shows that after bouncing off a low of $53,629 on Sunday afternoon, Bitcoin bulls steadily pushed the price action higher until a Monday afternoon surge led to a spike above $57,000, which has acted as resistance since Sept. 3.

At the time of writing, Bitcoin trades at $56,957, an increase of 5.02% on the 24-hour chart. While BTC is showing encouraging signs on Monday, analysts at Secure Digital Markets noted that “As uncertainty grows with the U.S. election approaching on November 8th, we expect volatility to remain elevated, particularly for short-dated maturities.”

“The first week of September saw BTC continue the decline that began for the asset in late August, with the price dropping to $52,756 on Friday, September 6th,” noted analysts at Bitfinex. “This placed BTC below the notable low of $56,711 that was recorded on May 1st - a significant level on the charts.”

Gold holds steady

Gold prices held steady on Monday as investors looked towards this week's U.S. inflation data to gauge the size of an expected Federal Reserve rate cut.

Spot gold was at $2,498.06 per ounce by 1146 GMT. U.S. gold futures rose 0.1% to $2,527.20.

Traders currently estimate a 75% probability of a 25-basis-point rate cut at the Federal Reserve's upcoming meeting, with a 25% chance of a larger 50-bp cut. However, these odds could shift following the release of U.S. consumer price data for August on Wednesday. Attention is also focused on Thursday's Producer Price Index (PPI).

“If inflation data comes in significantly below expectations, raising hopes for a 50-bp rate cut, gold could surge to all-time highs. Even with a 25-bp cut, the downside for gold prices would likely be limited since the Fed is still cutting rates,” commented Carlo Alberto De Casa, market analyst at Kinesis Money.

He further noted that gold faces key support at $2,470 and resistance at $2,520.

Stocks Rise as Buyers Scoop Up

The major indices all trended higher, with the S&P, Dow, and Nasdaq finishing the day up 1.16%, 1.20%, and 1.16%, respectively.

All major sectors in the S&P 500 advanced, lifting the benchmark by 1.2%. This rally follows what had been the worst start to September on record, based on data from Bespoke Investment Group dating back to 1953. Nvidia Corp. and Tesla Inc. led the gains among megacap stocks. Meanwhile, Apple Inc. unveiled the iPhone 16, with CEO Tim Cook highlighting that it was designed with artificial intelligence "from the ground up." Despite this, Apple's shares ended the day relatively flat after nearly a 2% decline earlier.

“We’re seeing mostly technical dip-buying,” said Tom Essaye at The Sevens Report. “Economic growth is undoubtedly and clearly losing momentum, but a soft landing remains more likely than a hard landing. This week focus turns back to inflation.”

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Note, trading Cryptocurrency CFDs and spread bets is restricted in the UK for all retail clients.