Has Bitcoin Battered Gold?

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 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 as spoken about ad nauseam in this column. 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.

Gold Daily

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.