FOMC Meeting today: Outlook for Bitcoin, gold, and silver trends ahead of the Federal Reserve's interest rate decision
Before the Federal Reserve Board of the United States held its FOMC meeting on October 28, the prices of Bitcoin, gold, and silver became the focus of market attention. The Fed will announce its decision at 2:00 p.m. Eastern Time, followed by a press conference held by Federal Reserve Chairman Kevin Warsh at 2:30 p.m.
The current market betting is that the Federal Reserve will maintain its interest rates unchanged. However, rising inflation and concerns about economic growth could make the Fed's stance a key factor in the next move of financial markets.
Federal Reserve Interest Rate Decision and Market Outlook
Market pricing indicates that the probability of the Federal Reserve keeping interest rates unchanged is 93.4%, while the probability of a rate hike is 6.6%.
Inflation remains one of the concerns in the market, with the latest CPI and PPI data both exceeding expectations. Rising energy prices are increasing inflationary pressures, while a weak real estate market, high borrowing costs, and increased layoffs indicate that the U.S. economy is facing challenges.
This means that the Federal Reserve is facing a difficult choice. If it sends out hawkish signals, suggesting that further interest rate hikes may be possible in the future, stocks and cryptocurrencies could come under pressure; if its wording is dovish, it might boost a market rebound, but it could also trigger concerns about inflation.
The trend of the US dollar will also depend on the speech of Warsh. A stronger US dollar may suppress the prices of gold and silver, while a weaker US dollar may support the prices of these two precious metals.
Bitcoin Price Outlook Before the Fed's Decision
If the selling pressure increases, Bitcoin may experience a pullback in the short term.
The technical analysis provided in the text indicates that 86,400 is a key level. If it falls below this level, Bitcoin could drop to 84,420; if it continues to weaken, it might even fall to 80,400.
If Bitcoin can hold above 86,400, the overall bullish trend will remain intact.
The remarks of Warsh may also affect the trend of Bitcoin. If his stance is dovish, it could support a rebound; however, if he signals further interest rate hikes, it might increase the selling pressure across the entire crypto market.
Gold Price Outlook
Gold is facing selling pressure, with the range of $4,054 to $4,060 being a key resistance zone. If gold fails to break through this range, the next downward targets will be $4,038, $4,029, $4,020, and $4,016.
If the buying pressure holds the support range between $4,029 and $4,038, gold could rebound to $4,054 to $4,060. The policy guidance from the Federal Reserve and the reaction of the dollar will be crucial for the next move in gold prices.
Silver Price Outlook
If the selling pressure continues, silver could fall to $53.87 and $53.63.
If silver rebounds, the key resistance range of $54.34 to $54.41 will need attention. If the price fails to break through this range, selling pressure may return once again.
However, if the support level is held, silver is expected to regain its upward momentum.
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