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Fintoism Weekly Market Outlook #1: Bullish on Gold & Silver, Neutral on Bitcoin and Stocks

Welcome to this week’s edition of the Fintoism Weekly Market Outlook, or FWMO. Several key markets will face high expectations to live up to. The future prices of gold, silver, bitcoin,  and the stock market will look very different from today. 

Gold Ends on a High

Through 2019, the gold price has gone through a revival of sorts. As the year came to a close, a new two-month high was reached to end on a high note.  With spot gold prices remaining firmly above $1,500, the outlook is very promising. The bullish sentiment is very likely to resume for some time to come.

The chart above indicates gold has been a strong tear for most of 2019. The expected dip in November and early December was less of a hurdle than expected. The gold market shows signs of a strong response, even today.  A renewed push to $1,550 next week is not unlikely to materialize. 

Silver Price Remains Bullish

Similar to gold, the silver price has gone through a strong second half of 2019. Despite a bleak outlook in May of 2019, the market rebounded very strongly. The peak silver price for 2019 is $19.08. Reaching that level again will be difficult, but not impossible, given the current circumstances.

Early 2020 momentum seems to hint at a new push to $18 per ounce.  With the current ongoing uptrend showing no signs of slowing down, anything is possible in the next seven days. The first resistance level sits near $17.89. Overcoming that hurdle will be crucial for a bullish silver price trend. 

Stock Markets Remain Fragile

Despite a rather volatile year, most of the major stock indexes ended on a high. The S&P 500 even managed to yield the highest annual gain since 2013.  Both the Dow and the Nasdaq had very strong performances over the year. This positive momentum will only last for so long, however. Any geopolitical tension can easily negate these gains in quick succession. 

The stocks market primarily benefit from positive international trade news. If the US-China “tariff war” remains manageable, the stock markets will benefit. This will all depend on what happens between today and January 15. On that day, President Trump will sign the Phase One Trade Deal with China.  Barring any unforeseen issues or escalations, it will have a positive effect on the markets. 

Can Bitcoin Finally Move up?

In the cryptocurrency space, concerns remain. The current bitcoin price momentum offers little to no bullish expectations for this week. As the world’s leading cryptocurrency remains range bound, no real changes are expected. Pushing through to $7,500 would send a very bullish signal to all traders.

For now, such a push seems unlikely in the week ahead. There is neither bullish nor bearish sentiment toward bitcoin. Some quick gains or losses may materialize, but the market will bounce back fairly quickly.  A push to $7,500 is unlikely. The same goes for a drop to $7,000 or lower. 

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.


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