Has Bitcoin Battered Gold?
Jeffrey Halley | Dec 12, 2017 11:19
Gold crumples again overnight as Bitcoin futures start trading, setting the scene for lower levels.
I suspect it is no coincidence that the day that CBOE Bitcoin Futures officially started trading, gold prices dropped in an otherwise sideways overnight session in most markets. The Commitment of Traders Report showed a substantial drop in speculative long positioning, which should be no surprise once 1260.00 broke. There has been much talk of a rotation out of gold and into bitcoin (but no concrete evidence), and where there is smoke, there is fire. Even if that fire ends up being the “rotating” money eventually being burnt to ash.
Gold fell from 1247.80 to close at 1242.00 overnight, rallying and failing at resistance along the way. This morning it has eked out a small rally to 1244.50 on physical buying and profit taking, but the price action remains unconvincing.
Gold has resistance at 1252.50, which held yesterday’s recovery attempt. It is followed by the break-out at 1260.00. Support is at the overnight low at 1240.70 with the charts again opening up a chasm to the 1205.00 regions after that.
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