Posted On 17 Jul 2017
The “yellow metal” exceeded the level of $ 1,300 per ounce in April and June. Its price has risen by about 5.5% so far this year, even though the Federal Reserve has persisted on the normalization of interest rates.
But bad times are yet to come. Renowned agency Citi says that gold must find resistance levels close to $ 1,121 until the end of the year.
Potentially, the limitation of the precious metal has been caused by the increase in cryptocurrencies, such as Bitcoin, according to a report from Plan A Consulting.
According to Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, Bitcoin and Ethereum are “cannibalizing the demand for gold.”
A cryptographic currency is a digital asset designed to function as an exchange medium using cryptography to secure transactions and control the creation of additional currency units. Cryptoconversions are a subset of alternative currencies or specifically digital currencies.
According to CitiFX Technicals, led by Tom Fitzpatrick, a gold fall is looming. Yesterday, August’s future deliveries of the metal in the United States gained 0.84 percent, reaching $ 1,227.50 per ounce. The rest of the year will give answers. (I)