Traders can focus on Trump. US President Donald Trump’s top foreign policy advisers raced to contain political damage from a report saying he revealed sensitive classified information to Russia’s top diplomat during an Oval Office meeting last week. Trump problems will be good news for gold bulls. Buyers and investors of gold are not there on the hope of more price falls. If gold shows some short term strength then laggards will start investing in gold.
There can be an inverse correlation between gold prices in US dollars and gold prices in bitcoins. I expect this trend to continue for the rest of the year. Zooming bitcoin prices is also one of the reasons why gold in US dollars is not rising. Gold prices will zoom if and when bitcoin starts falling.
Last week, there was a massive attack in global computer system. Governments are trying to move into to zero cash all emoney based system. Governments are even trying to induce you to buy gold in electronic form. All your investment will become useless if and when there is a similar attack or a more fatal attack on global computer systems. Investment in physical gold is the need of the hour. Physical gold investment is the only liquid hedge against a potential crash in the global emoney system. Gold is not to be looked at as a short term quick money investment.
This post was published at GoldSeek on 16 May 2017.
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