Noor Capital | Interview with Muhammad Hashad on Dubai TV – May 29, 2023

In an interview on Dubai TV, Mohammed Hashad, Head of Research and Development at Noor Capital and the member of the US Association of Technical Analysts, commented on the latest developments on the US debt ceiling, following the talks that brought about positive news as the White House and Congress had finally reached a preliminary deal. Hashad gave a reading of these developments and their repercussions on the performance of global markets, stressing that the debt ceiling has been the most important headline on the economic scene for a long time.

“I think that the debt ceiling that was once a crisis is about to come to an end, according to most expectations, there is some positive news stating that the White House has concluded a deal, that is, reaching solutions with the Republicans, and the main idea we have now is not whether to raise or agree to raise Debt ceiling or otherwise, because eventually the debt ceiling will be raised to save the US government, but the basic idea now is focused on core points of contention between the two nig US parties, I mean specifically that there are some important issues including but not limited to; Medicare Social Security, yes, we see the Republican Party calling for a reduction in public spending to 130 billion dollars, and it is also calling for the return of unused funds that were earmarked at the time of the pandemic”.

Hashad also indicated that some of the necessary legislation for the approval of energy projects still has a long way to go, and markets may witness some challenges until this project is passed through Congress, but in the end we may see concessions from both parties to avoid the closure of the US government before the liquidity runs out to pay off debts. In other words, the debt ceiling crisis still has a long way to go before it is resolved decisively and until it is passed through Congress, but it may be resolved in order to avoid an economic crisis for the US economy and a global economic crisis.

Oil prices
Asked about the repercussions of the developments of the debt ceiling crisis on global markets amid the rise in oil prices, and what specifically gives oil prices their latest upward momentum, Hashad replied: “The developments of the debt ceiling crisis had repercussions on various market sectors, not only oil, but when talking about crude oil, it should be noted that oil received support from a breakthrough or the existence of signs of a solution to this crisis, because in the absence of solutions, one can say that the US economy is the largest consumer of energy in the world, and this may affect demand levels, and accordingly oil prices, which hover around the level of $ 73 a barrel. Oil prices have also benefited from the batch of positive data that was issued in the US economy, the most important of which was durable goods orders, which surged, in addition to the latest reading of the Personal Consumption Spending Ondex, and this is what the markets can quickly interpret as a sign that the US economy has not slowed down as much as was expected.

Gold Prices
Asked about gold prices, which were on the rise in the past days, but many are suggesting that the end of this upward path for gold prices is looming, Hashad said: “There are much data that affect gold prices in this important period, including without a doubt the rise in interest rates, inflation and the debt ceiling crisis.” According to Hashad, data on the fundamental analysis is indicating a downward trend and also on the level of technical analysis, and he believes in the medium term that gold prices broke a very important support level and turned into a resistance level at $1975 per ounce, so, the precious metal still has more to decline to USD 1910 per ounce.

Cryptocurrencies

Hashad commented on the performance of Bitcoin, as it surged during the last sessions of last week up to $ 28,000, but in general cryptocurrencies, specifically Bitcoin, have suffered a lot in the recent period and face many challenges, and about the most prominent of these challenges facing Bitcoin, as well as the reasons that prompted investors to buy bitcoin, Hashad explained that there is a discrepancy between the bullish and bearish trends, but the general trend is still bearish. Its level since 2018, that is, 5 years ago, and currently we find that the offer is two point two and two point twenty three million tokens in the markets, and therefore the markets sometimes do interpret the exit of crypto assets from the markets as a beginning or it may be the beginning of a looming surge, and optimism, while others could interpret it in light of the worst scenario, which is just an easing of selloff pressures, but in general, the performance of cryptocurrencies is still the worst in in light of the rise in the performance of the US dollar in general, amid rising expectations that the Federal Reserve will continue its monetary tightening policy.