Gold, Bitcoin: Mortgage Fraud Accusations Shake Risk Appetite
Gold and Bitcoin have found themselves in tumultuous waters as recent accusations against Fed Governor Cook by Trump have sent ripples through the market. Initially, market sentiment soared due to Powell's dovish comments, only to be brought down again by legal controversies.
Written by: Razan Hilal, CMT, Market Analyst
August 26, 2025
Key Events
- Trump’s mortgage fraud accusations target Fed Governor Cook.
- U.S. Dollar Index remains stable near 98 amidst rising tensions.
- Gold supports its bullish-to-neutral status close to $3,370.
Despite a promising uplift from Powell's comments, Trump's actions have dumped cold water on an optimistic outlook. Legal insecurity sways the market with Bitcoin teetering below $110,000 and indices falling over 0.5%.
Technical Analysis: Quantifying Uncertainties
Gold Daily Time Frame – Log Scale
Gold's current structure suggests it is holding within a bullish-to-neutral range. The price is battling the $3,380 resistance to confirm bullish trends, while near-term crucial supports can be observed at $3,320 and downward.
Gold Monthly Time Frame – Log Scale
The longer-term view exhibits a cup-and-handle formation, needing a breakout above the $3,450 mark to gain momentum towards $3,780 and potentially beyond. Should the price fall below $3,320, further declines could reach as far down as $2,800.
Bitcoin Daily Time Frame – Log Scale
Bitcoin's chart is facing pressure with a potential double top forming near $125,000. A close below $110,000 could send the price plummeting towards targets around $104,000.
In summary, both gold and Bitcoin are in vulnerable positions, grappling with uncertainties in the financial realm. The upcoming days will be crucial as traders keep a sharp eye on key technical levels and market reactions to Trump's legal controversies.
Summary
The atmosphere in the market is heavy, influenced by Trump’s recent legal actions against Fed officials. Investors should stay alerted as gold hovers around its crucial support levels and Bitcoin fights for stability amidst a backdrop of legal uncertainties.
Opinion & Analysis
This situation may seem bleak, but it could present trading opportunities for astute investors ready to navigate the choppy waters. Follow the charts closely and be prepared for swift changes in sentiment.
