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U.S. Consumer Spending Expectation Climbs to 8-Year High, Elon Musk Tweet Sends Tesla Shares Down & Ethereum Rallies Closer to $5,000

Gold climbs, as U.S. consumer spending expectation climb to 8-year high

Gold prices were up to start the week, as markets reacted to data which showed that consumers in the U.S. expected to spend and earn more over the next year.

According to the survey from the New York Federal Reserve, consumers believe that household income will grow by an average of 3.3% in 2022.

This is 0.3% higher than September’s survey, and the highest since the series began in October 2013.

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In addition to this, consumers expected more in the next year, with expectations rising to 5.4% in October from 5.0% in September, which was also a new high.

XAUUSD rose to an intraday high of $1,826, its highest level since September 6th.

Tesla shares fall after Musk twitter vote

Shares in Tesla were trading lower on Monday, as founder Elon Musk held a Twitter poll to see if he should sell his stake in the company.

Over the weekend, Musk tweeted that, “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this?”.

Of those who responded, 58.9% voted “Yes”, with Musk stating that he would honour the vote, regardless of which way it went.

Providing he does, he will be selling what would be nearly $21bn of Tesla stock, in a bid to meet tax obligations.

Regarding this, he stated, “I only have stock, thus the only way for me to pay taxes personally is to sell stock”.

As of writing, $TSLA was trading 3.39% lower on Monday.

Ethereum rallies to closer to $5,000

Prices of Ethereum were also trading higher on Monday, with the world’s second largest cryptocurrency moving closer to $5,000.

ETHUSD rallied to an intraday high of $4,794, its highest level on record, and comes as the interest in DeFi networks continues to grow.

The Ethereum network has been one of the pillars in developing NFT’s, and with interest in these tokens becoming more popularised, ETH has profited as a result.

💡 Price predictions for Ethereum
Price predictions for Ethereum have varied. In early October some panelists suggested that the crypto could reach 4,500 by the end of the ear. Others can see its price go to 25,000 even 30,000 by 2025. Only time will tell what will happen with Ethereum but the mix between trade and hold advise is up to the investor to choose.

Litecoin was also trading by as much as 10% to start the week, with prices in BTCUSD nearing new highs also.

Despite recent highs, many are still cautious on the price surge, and expect some corrections in upcoming weeks.

“Do more of what works and less of what doesn’t.”

– Steve Clark

Eliman Dambell

Senior Market Analyst