It took three days for the price of Gold to break thru and settle above its major level of resistance at $1,212, but now we see the yellow metal gaining momentum.
Helping boost the price of Gold is the pull back of the Dollar Index trading at the time of this report at 96.88, after a reaching a high of 97.70 on November 12. Other world currencies are mixed with the Yen trading at 1.1314, Sterling stabilizing at 1.2835 and the Euro up today at 1.1345.
Also good news for the Gold market, but not so much for Equities, is the recent news released by some major corporations predicting future earnings to weaken next year.
We all know that the Equity Markets look forward 6 months out and this corporate news, along with higher interest rates on the horizon and continued trade war concerns, should pressure Equity prices and the Dollar and support higher Gold prices to come.
Many Cryptocurrency investors are asking is this the beginning of the end of Bitcoin?
The lack of interest or excitement, (as this product has had in the past), has attributed to a decline in the price of Bitcoin and has brought other popular cryptocurrencies down along for the ride.
Bitcoin trading at $5,555.00 today, well below the $6,000 level, a key level many investors were hoping would hold. The last time the price bitcoin dropped below $6,000 was back in November 2017.
Bitcoin’s market action has been pretty quiet in recent months with little volatility to speak of, but this past Wednesday prices declined more than 10 percent.
A story emerged on Wednesday that Bitcoin was doing a software upgrade and that news generated enough concern for some investors to head for the exits.
Wednesday the price had a big move to the downside, from $6,370 down to $5,556 dollars in a few hours. Trading volumes have also increased during that time span. At the time, the move established a new low for 2018.
There are technical issues that have to do with dividing the network in Bitcoin SV and Bitcoin ABC. These technical issues are beyond my knowledge. But speaking with some folks who are familiar with the workings of Bitcoin indicated that in the end, one of the these coins will come out the winner.
Bitcoin SV has a larger support from Bitcoin miners, which is very important to keep the network going. Bitcoin ABC has a stronger support from the community, but not from miners.
If you are an investor in the Bitcoin market I suggest you do your homework and try to understand this “highly technical” aspect of the future development of this network.
In the past, the majority of investors got hung up on the crazy volatility this product gave them and were excited that it looked at one point that the sky was the limit. Now, for the most part, the excitement has dried up and the ones with all the understanding of how this product works will have the inside track in predicting future price movements.
For me, I have a full plate of news to decipher each day, trying to give our readers the most up-to-date information on what continues to move the price of Gold and the other metals. Trying to follow all that and the hundreds of cryptocurrencies, seems to me to be an impossible task.
Have a wonderful Friday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.