Tuesday, June 27, 2017

Gold ready to fill the gap as both the dollar and Bitcoin see capital flight moving away

Yesterday's large drop in the gold price has already been speculated to have been due to a computer flash crash, or from a 'fat finger' trader, and does not precipitate a medium or long-term downward trend for the monetary metal.  And what is also perhaps most interesting is that investment in Bitcoin and other cryptocurrencies, as well as in the dollar, have fallen even greater in recent days leaving gold ready to fill the gap as capital flight looks for a place of safety.

The price of gold dropped significantly Monday on what some are speculating may have been a fat-finger mistake. In other words, a trader may have accidentally or purposefully made a market-moving trade the gold market was unable to absorb easily. However, gold is recovering significantly today, either on a rebalancing post a fat-finger error, or more likely, on the euro-lifting speech of Mario Draghi this morning and the war rhetoric coming out of the White House regarding Syria. Let's call that an itchy trigger finger driver. - Seeking Alpha

Overall, the total market capitalization of cryptocurrencies fell to as little as $91.4bn today, a more than 20% decline from the all-time high of $117.2bn it reached around mid-June, and down over 13% from the day's open at $105.3bn. 
At the time of report, the top 20 cryptocurrencies as ranked by market capitalization had all suffered declines in the last 24 hours, according to data from CoinMarketCap. - Coindesk


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