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Posted by on Jun 5, 2017 in Dennis Gartman, Featured, Market Insight

Gold vs Bitcoin?

Gold vs Bitcoin?

June 5, 2017

Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.

Gold is strong in non-US dollar terms. Gold/Yen had run into resistance at the ¥141,000-141,250/oz. level several times over the course of the past three weeks. On Friday it broke through that resistance and actually has been rising since trading began in Asia earlier today. AS we write, gold/Yen is trading at or near to ¥141,500/oz.

Gold/Eur, on the other hand, had found strong support since early last month between €1120-1125. That support was tested 5-6 times over the course of the past month and that we find impressive; however, gold/EUR also peaked twice during that period at or near to €1135- 1137/oz., and as we write it is trading €1136. To truly turn this market higher, 1137 shall have to be taken out to the upside and given the confusion in the UK elections… noted below at some length… and given the confusion regarding the spate of Muslim terrorist attacks in London, Paris et al, we have to believe that new and higher highs lie ahead.

We continue to fear, however, that Bitcoin continues to draw capital away from the gold market; that is, frightened capital that in the past always made its way to gold is being diverted to the speculative bubble that is the Bitcoin market at the moment. We expect this to end, but we shall have to admit that Bitcoin’s speculative strength has gone far farther than we might have ever dreamt possible!

The information, statements, views, and opinions included in this publication are based on sources (both internal and external sources) considered to be reliable, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. Such information, statements, views and opinions are expressed as of the date of publication, are subject to change without further notice and do not constitute a solicitation for the purchase or sale of any investment referenced in the publication.
david@mediaworksllc.com

The AlphaBaskets blog provides frequent market insight and commentary by AdvisorShares Investments, LLC, created by AdvisorShares and other leading active managers.  AdvisorShares Investments is an SEC-registered investment adviser and the investment adviser to the AdvisorShares actively managed ETFs. The views expressed on AlphaBaskets should not be taken as investment advice or a recommendation for any of the actively managed ETFs advised by AdvisorShares.

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