#BTCPrediction @everyone

# **Bitcoin and Gold Strengthen Ahead of The Fed's Decision Early Morning**

Gold and Bitcoin (BTC) both strengthened ahead of the Federal Reserve's (The Fed) interest rate decision amid rising geopolitical tensions and global trade policies.

Spot gold rose 0.7% to US$3,357 per ounce, driven by demand for safe-haven assets due to conflicts in the Middle East, political uncertainty in Europe, and a weakening US dollar. Bitcoin also increased to US$97,709.

The Fed is expected to maintain interest rates at 4.25%–4.50% on Thursday (08/05) early morning, with market focus shifting to Jerome Powell's statement for signals of potential policy easing by the end of the year.

On the other hand, gold received additional support from buying actions by central banks and Chinese investors, as well as concerns over inflation risks and a weakening dollar. However, analysts warn of a potential short-term correction to US$2,400 to US$2,450.

Although the long-term trend for Bitcoin remains positive, the current price is in a resistance zone between US$96,000-US$100,000. The support line is at US$92,000, and the upward trend is considered intact as long as this level holds.

For your information, both gold and Bitcoin are currently benefiting from global uncertainty and expectations of looser monetary policy. However, the next movements heavily depend on the direction of The Fed's policy and geopolitical developments.

*Not Financial Advice. Do Your Own Research*

-# Image Source: GettyImages