Gold in trouble as dollar breaks key resistance
Gold is struggling on Tuesday. The last few sessions has seen it ride the wave of silver’s popularity – albeit to a far, far lesser degree – but with it now getting a bit of a reality check and the retail crowd losing interest, gold is tumbling. What’s more, the dollar has been rallying and the index has broken through major resistance at 91. Markets are behaving oddly at the moment but this breakout has been building for some time and could put serious pressure on the yellow metal in the near-term. We could see gold back on the defensive soon with USD1,820 a big test and USD1,800 below. I wouldn’t be surprised to see USD1,760 also targeted.
Investors have also not been in a particularly upbeat mood since the new year and I don’t think we’ve seen enough of a correction to draw them back in. Whether it was the “taper tantrum” talk, lack of interest in earnings or being spooked by the retail community, it’s not the behavior of the buy the dip crowd we’ve seen so much of over the years.
Bitcoin settles in its comfort zone
It’s been a funny week for bitcoin. From once again being forced to defend USD30,000 like its life depends on it to the world’s richest man teasing his following by adding #bitcoin to his profile, it’s been a wild ride. One, we’re all-too-accustomed to at this point. But even by bitcoin’s own standards, it’s been pretty crazy. It’s going to be so interesting to see how it behaves in the coming days after initially giving up all of Elon’s easily fought gains only to stabilize in its comfort zone around USD35,000. Another run at USD30,000 would once again be a worrying sign, especially after the excitement of last Friday but there’s nothing obvious to suggest it’s what we’re going to see.
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