Bitcoin and Gold Face Pullbacks Amid Weakening Services PMI
Bitcoin (BTC) is facing growing headwinds, trading below $86,000 on Monday. Despite the pullback, it remains within a broad range of $84,000 to $88,000. A breakout from this zone could determine BTC's next direction.
Gold (XAU/USD) continues its downward trend, nearing $4,100. The path of least resistance remains downward, with weak momentum indicators suggesting further declines. A rebound near $4,000 is possible, but recovery faces significant resistance between $4,300 and $4,330.
The US ISM Services PMI declined to 54.9 in September, below market forecasts and the previous month's reading of 55.4. This indicates a modest loss of growth momentum in the services sector. Inflationary pressures intensified, with the Prices Paid Index rising to 74 from 72.6, while labor market conditions improved slightly.
Investors are focusing on the Federal Open Market Committee (FOMC) Minutes on Wednesday, seeking insights into the interest rate path and inflation risks. The odds of an October rate hike have eased to nearly 24%, according to CME Group's FedWatch tool. Meanwhile, interest in crypto assets remains high, with the Fear & Greed Index holding at 70 in the Greed territory.