One analyst said that gold will increase regardless of whether Donald Trump or Joe Biden win the election, with Bitcoin (BTC) targeting $ 11,000.
In an interview with the media arm of Giant Precious Metals Kitco on October 7, Frank Holmes, CEO of US Global Investors, said the company was “betting on gold” to provide optimism by the end of the year.
“This is the season of love. This is the seasonality of the wedding season in India, this is the season with Diwali candles, then Christmas, and the climax marks the Chinese New Year,” he told the TV channel.
“This is the right time to consume gold and it is closely linked to the growth of GDP per capita.”
Gold, like Bitcoin, peaked in August before declining, coinciding with an update in the US dollar index (DXY). The results of the US election in November may significantly affect the dollar’s condition, but Holmes believes that gold will not affect the outcome.
He added, “Some wager on blue, others on red, and I bet on gold.”
According to Cointelegraph, gold beetle Peter Schiff has also expressed a less optimistic view of the dollar, arguing that a Biden win would be a worst-case scenario.
Holmes confirmed that he is looking for a $ 4,000 target price for XAU / USD.
Brandt focuses on the weekly and daily bitcoin price
Bitcoin found an inverse relationship with DXY, which was able to offset losses it incurred earlier this summer. Sideways trade warned of a lack of progress in gold: $ 11,000 was a long way off in October.
News that the payment giant Square followed MicroStrategy by buying large quantities of BTC in the markets on Thursday, with BTC / USD continuing to face resistance at $ 10,940 – instead of a previous rejection late last month.
But for analysts, this move is a clear sign of the good things to come.
Veteran trader Peter Brandt responded on Twitter: “The fact that a global company is contributing BTC dollars to the balance sheet is a big event.”
“Weekly and daily charts can send a big buy signal.”
Bitcoin price analysis from Peter Brandt. Source: Twitter
Discussing Square, Michael Van DePope, an analyst at Cointelegraph Markets, warned that jumps in short-term bullish behavior could remain so – if Bitcoin doesn’t finally overcome the $ 11,000 resistance.