It’s Gold Outside

Baby, It’s Gold Outside. Consecutive crashes on spot gold prices, which dropped to the lowest level since March, have unveiled a hard truth for the precious metal — it is probably not the best of times to go bullish on gold. The flash crash on Monday was triggered by strong jobs data indicating that the U.S economic recovery is underway, and exacerbated by poor liquidity and technical factors. All eyes are now turned to the new CPI data, to be released later today, and comments from the Fed toward the end of this month to determine the next direction. Meanwhile, still a good day to go bullish on crypto. Despite a few unsuccessful attempts to break above the major hurdle at $46.5k, the price of Bitcoin has established strong support above $45k and is trading on top of the 100-hourly simple moving average. While gold’s macro trend is gradually losing steam, it looks like Bitcoin is picking up its upward momentum. We’ll see how Bitcoin fares against the most recognized inflation hedge in the days to come.