Skip to content Skip to footer

Gold Prices React to Powell Re-Nomination, BoE Issues an Inflation Warning & Bitcoin Approaches a 5-Week Low

Gold prices drops over $40 on Powell re-nomination

Gold prices were down by as much as $42 on Monday, as markets reacted to the news that President Biden had chosen Jerome Powell as his nominee for Fed chair.

After months of speculation, the U.S president opted to remain with the current Federal Reserve regime, selecting Powell and vice chair Brainard for another 4 years.

Never miss trade with TradeGATEHub

In a statement regarding the decision, Biden stated that, “We need stability and independence at the Federal Reserve – and I have full confidence after their trial by fire over the last 20 months that Chair Powell and Dr. Brainard will provide the strong leadership our country needs”.

XAUUSD fell to an intraday low of $1,804.81 on the news, which is its lowest level since November 5th.

The S&P 500 also rallied to a new high on the reports and was up 0.36% as of writing.

Sterling slides as BOE give inflation warning

GBPUSD fell to start the week, as Bank of England governor Andrew Bailey gave his assessment on the current impact of inflation in the UK.

Speaking over the weekend, Bailey stated that, “You’re in a fairly febrile world … the inflation picture is two-sided. There are risks both ways. Obviously, our concern would be that if it gets into second-round effects, it could be elevated for longer”.

💡 Inflation is at a 10 year high
Inflation in the UK unexpectedly reached a 10 year high just a few days ago. As the world faces a rising cost of energy and consequently consumer goods governments around the world must think quick.

The Bank of England has been monitoring a confluence of crucial data points as inflation remains persistently high while economic growth moderates and labor conditions tighten. Wednesday’s data will surely add more pressure on the Bank to act at its December meeting.

The head of the BOE went on to add that, “If the economy evolves in the way the forecasts and reports suggest, we’ll have to raise rates. Which, by the way, is entirely consistent with what I said in October”.

Many were surprised when Bailey and the MPC voted to keep rates unchanged earlier this month, as inflation rates surpassed the banks’ targets.

GBPUSD fell to an intraday low of 1.3385 on the news.

Bitcoin price approaches 5-week low

Bitcoin prices fell for the 6th consecutive session to start the trading week, with prices now near their lowest in over a month.

BTCUSD fell to an intraday low of $56,474, with many anticipating a drop could see prices fall to below $50,000 this week, if bears maintain this recent pressure.

Many also believe that with the vote of confidence handed onto the current Federal Reserve chair Powell, by President Biden, has led to investors choosing stock over crypto to start the week.

💡 Crypto vs Stocks
As crypto trading continues to consolidate itself as a strong option for traders, many people have started to wonder which is better. Crypto or stocks

Stocks offer more diversity (between 50% – 70% of crypto trading is tied up to bitcoin) while crypto offers its users more volatility, where an alt coin can jump over 1,000% in a span of a few days. Depending on your preference for risk and knowledge on the matter we always suggest people study thoroughly before making a decision.

Ethereum was down on Monday, trading 4% lower, with Cardano and Solana also lower, falling between 4-5% respectively.

Overall, the crypto market was down 3.75% as of writing.

“In investing, what is comfortable is rarely profitable.”

– Robert Arnott

Eliman Dambell

Senior Market Analyst


Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.