Gold Price Prediction as Tom Lee Says Metals Rally Could Hit Crypto

The gold price has been on a rip in recent weeks as investors flee to safe-haven assets amid ongoing macroeconomic uncertainty and geopolitical turbulence.

In the past 24 hours, gold went on to set yet another all-time high (ATH) above $5,598. 

Although the price of gold has since retraced after reaching that record high to trade at around $5,509 at the time of writing, the precious metal is still over 4% up on the 24-hour time frame. This has also pushed its weekly performance to more than 14% in the green.

4-hour chart for Gold price (Source: TradingView)

From a technical perspective, the rally in the past 24 hours saw the price of gold break out of the medium-term ascending channel that had formed on its charts. Sellers have since re-entered gold’s order books, however, which could see the precious metal’s price re-enter the channel in the next 24 hours.

If that happens, gold’s price might test the recently-crossed $5,184.41 level as support. A drop below this mark could then result in a plunge to as low as $4,552.21. Before this potential fall, there are the middle and lower levels of the aforementioned price channel that will likely act as technical safety nets. 

Technical indicators, such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), suggest a short-term pullback may be in the cards for gold. 

In the last couple of hours, the RSI crossed below its Simple Moving Average (SMA) line. This is a classic indication that sellers have gained an upper hand against buyers in terms of strength.

Meanwhile, gold’s bullish momentum seems to be weakening as the MACD line starts to drop towards the MACD Signal line on the 4-hour chart. 

As indicators suggest gold’s rally may undergo a brief pause, Bitmine Chairman Tom Lee says that the capital injection into precious metals could soon make its way to crypto. 

“As my friend Slavka says, ‘it’s been a rolling feast in risk appetite, now on precious metals.’ But then this will likely move onto crypto,” Lee said on X while commenting on what Bitmine called “a vortex sucking money into precious metals.”

Bitmine is currently the largest corporate holder of Ethereum (ETH), which, along with the rest of the crypto market, has underperformed against precious metals in the past few weeks. This downturn continued in the past 24 hours, with the price of ETH plummeting over 5% in the past day of trading. 

4-hour chart for ETH/USDT (Source: TradingView)

The leading altcoin continues to trade within a long-term negative channel, and is now nearing the support at $2,777. Dropping below this point could extend the downturn. 

On the other hand, a rebound in the next 24 hours could boost the price of ETH to the upper boundary of the bearish channel, which is currently confluent with the $2,985 resistance level.

Technical indicators warn that ETH’s price may drop some more in the next 24 hours. The RSI on the 4-hour chart is sloped downward below its SMA line. Meanwhile, the MACD line recently crossed below the MACD Signal line. This could be seen as a continuation signal of the current downtrend.