23.01.202619:18 Analisis Forex & Kajian: Demand for gold and stocks will remain, while demand for cryptocurrencies and the dollar will stay weak (there is a possibility of a renewed rise in gold prices and a decline in Bitcoin)

Despite a certain easing of geopolitical tensions after D. Trump's speech at the Davos forum, as they say, a residue remains. Yes, the U.S. president stated that he would not occupy Greenland, but at the same time made it clear that this island, which belongs to Denmark, would still fall into a vassal dependency on the United States.

Of course, such a state of affairs could not and cannot fail to support demand for gold—not only as a safe-haven asset, but already as the main financial asset in the world that will take shape after the end of the Ukrainian crisis and the emergence of new global governance institutions to replace the UN. This is why the "yellow metal" enjoys such strong demand and may continue to rise in dollar terms toward the $5,000 level and even above it.

If the likely future of gold prices is more or less clear, what prospects might the U.S. dollar have? Will its importance really fade in the coming years?

In fact, this is not an idle question. At present, the dollar's share in global trade transactions remains quite high, despite the fact that the previous administration of J. Biden did everything possible to use it as a financial weapon against Russia amid the Ukrainian crisis. Countries of the Global South and East have begun to conduct part of their trade operations in national currencies, which undermines the hegemony of the dollar and, consequently, that of the United States in the world. However, it is still too early to say that the dollar will move to the background. Much will depend on the actions of the current administration in Washington.

So, what can be expected in the markets in the near foreseeable future?

I believe that gold prices, after a minor correction, will resume an upward trend, as the factor of geopolitical tension will hang over the markets for a prolonged period. On this wave, in the near future the price of spot gold will rise to the $5,000 level and attempt to consolidate above it.

The dollar, despite threats from the EU to begin selling off Treasuries, will be supported in the Forex market by the weakness of the currencies traded against it and by the attractiveness of dollar-denominated assets, including U.S. equities, against the backdrop of declining interest in European and other global stocks.

Overall, I continue to expect a recovery in demand for U.S. stocks and gold. The dollar and cryptocurrencies will remain under pressure.

Daily forecast:

GOLDThe price of spot gold is undergoing a mild downward correction while holding above the support level of 4915.70. Failure to fall below this level may lead to a resumption of growth toward the 5000 level. The level for buying gold may be considered at 4933.50.

BitcoinThe cryptocurrency has fallen below the 89568.00 level and may continue to decline amid falling demand for cryptocurrencies due to unclear prospects, remaining under pressure from geopolitical tensions. After a local recovery, Bitcoin may resume its decline and fall to 86255.00. The level for selling it may be considered at 89250.00.