empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
20.03.2025 09:23 AM
Markets Are Stuck in a Vicious Circle with No Exit in Sight (Potential Decline for Bitcoin and Gold Prices)
Open trading account Open demo account

The markets are currently experiencing significant shock due to a prevailing negative sentiment that looms over them like a heavy burden, with no resolution in sight. Given this situation, the future dynamics of the market remain uncertain and raise important questions.

As expected, the Federal Reserve left all monetary policy parameters unchanged. During the press conference, Chairman Jerome Powell confirmed that the central bank hopes to cut the key interest rate twice this year but highlighted existing problems and risks. So, what are those?

The Fed chair didn't hide the consequences of Donald Trump's customs tariffs. He explicitly stated that the tariff policy is likely to lead to higher prices, and it is unclear how much prices will rise or whether these inflationary changes will be temporary. Powell admitted that the Fed itself doesn't fully understand the long-term effects of the 47th president of the United States' economic and geopolitical actions. The uncertainty factor will continue to loom over the national economy and markets.

Furthermore, for the first time since Donald Trump took office, Powell hinted that the tariff policy will contribute significantly to rising inflation as tariffs increase the cost of imports. This is especially notable because the structure of the U.S. economy remains primarily service-oriented. A majority of goods are imported, not produced domestically. This means that the rising costs of imports will likely drive inflation higher, potentially reaching levels much higher than what we see now.

So, why did the U.S. stock market receive even a small but much-needed boost in this gloomy situation?

First and foremost, this is because, despite the crisis in Europe, geopolitical tensions in the Middle East, and elsewhere, foreign capital is still flowing into the U.S., seeking refuge in such uncertain times. Additionally, after Powell's press conference, investors suddenly recalled that the Fed might cut interest rates twice. However, the markets and Powell seem overly optimistic and out of touch with reality. The reality is that with the expected rise in tariff-induced inflation, the risks of a recession, coupled with stagflation, are looming, making it impossible to lower interest rates under the current central bank monetary model.

Considering everything described above, I don't see any prospects for a strong recovery in demand for U.S. stocks, tokens, or commodity assets due to the extremely high uncertainty about the future of the U.S. and the global economy. The market is stuck in a vicious cycle, moving along without any current possibility of breaking free. The only asset that will likely continue to be in demand is gold, a safe-haven asset currently testing the $3,050 per ounce level. Also, under the current conditions, the U.S. dollar, according to its ICE index, will likely continue to consolidate in the range of 103.20-104.00 points for some time.

Forecast of the Day:

This image is no longer relevant

This image is no longer relevant

Bitcoin

The token is trading erratically, influenced by limited demand due to the overall uncertainty that dominates the markets. This prevents it from growing confidently. Its inability to break above the resistance level of $86,500 could lead to a local reversal and a decline to the $82,200 mark.

Gold

Gold prices are receiving support due to high geopolitical risks and uncertainty surrounding the U.S. and global economies. Investors and central banks are actively buying gold to hedge their financial risks. The local overbought condition of the asset may lead to a correction to $3,025, from which it will try to rebound. After overcoming the $3,050 mark, it may aim for the new target level of $3,080.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Top analytics

EUR/USD Overview – June 18: Will the Fed Save the Dollar?
03:57 2025-06-18
Fundamental analysis
EUR/USD Forecast for June 18, 2025
05:49 2025-06-18
Technical analysis
Trading Recommendations and Analysis for GBP/USD on June 18: Pound Remains in a Flat Range
03:56 2025-06-18
Trading plan
Trading Recommendations and Analysis for EUR/USD on June 18: The Dollar Rises Paradoxically
03:56 2025-06-18
Trading plan
USD/JPY Forecast for June 18, 2025
04:58 2025-06-18
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.