Home > Boards > US Listed > Mining/Resources > Gold Miners ETF (GDX)

Will Gold Continue to Strengthen Versus Cryptos?

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
Member Level 
Followed By 573
Posts 78,165
Boards Moderated 44
Alias Born 03/10/04
160x600 placeholder
DiscoverGold Member Level  Saturday, 05/22/21 10:45:50 AM
Re: None
Post # of 3728 
Will Gold Continue to Strengthen Versus Cryptos?
By: Carl Swenlin | May 21, 2021

It has long been our belief that gold should be doing a lot better, considering the reckless spending and borrowing that is currently in progress. We have also believed that billions of dollars being diverted into Bitcoin (and other cryptos) is the reason for gold's poor performance. In his recent The 10th Man newsletter, Jared Dillion included a chart showing the relative strength of gold versus Bitcoin that offered hope that this detrimental trend may be about to reverse. Here is our version of that chart. Note the rounded bottom forming this year, the result of sudden crypto weakness versus relatively steady gold prices. No guarantees, but we think that the rounded bottom is more promising than the spike bottom we saw in 2017. Let's take a look at Bitcoin and Gold next.



Bitcoin

Bitcoin has been in decline since mid-April, and this week some major selling took place. Intraday on Wednesday, Bitcoin was down nearly -55% from its April top. The rounded top formed over the last several months looks like a major top. Reported on Fox Business: "The IRS disclosed Thursday 'businesses that receive crypto assets with fair market value of more than $10,000' will need to be reported." We can be sure more regulation of crypto is on the way, and that will not be favorable to crypto prices moving higher. Is crypto becoming a crypt?



Gold

IT Trend Model: BUY as of 5/3/2021

LT Trend Model: BUY as of 5/21/2021

GOLD Daily Chart: We are declaring an LT Trend Model BUY signal as of today. The 50-EMA is just a hair away from crossing up through the 200-EMA. Technically, we should wait for the actual crossover to change the signal, but price is well above the moving averages, and the crossover should happen Monday. Might as well anticipate it.



It is obvious that the rising trend for gold from the March low is accelerating. That, combined with this week's breakout, could result in some snapback or consolidation soon.



GOLD Weekly Chart: A breakout and a solid weekly PMO bottom and crossover BUY signal are most encouraging.



Happy Charting!

- Carl

Read Full Story »»»

DiscoverGold

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences