Gold Or Bitcoin As Tensions Rise Between U.S. And North Korea?
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(Kitco News) - As investors flee to safe-haven assets amid heightened U.S. and North Korea tensions, some question which is better: gold or bitcoin? Here are two traders who are confident in gold, despite bitcoin hitting an all-time high earlier this week.
Both gold and bitcoin have witnessed impressive gains this week, with gold approaching its key psychological $1,300 level and bitcoin touching a new all-time high above $3,500 per unit.
Despite the price gap, traders say they remain committed to the yellow metal, citing fundamental and technical reasons.
“When you look at gold over the past couple of months, [it has] tracked very well [relative] to the cryptocurrency," Brian Stutland of Equity Armor Investments told CNBC's Futures Now. “If you price adjust and volatility adjust, I think gold still has a little bit of catching up to do.”
Another trader from Path Trading Partners sees bitcoin as an unstable asset since it could easily be replaced with another cryptocurrency.
“Bitcoin, right now, is the most popular [cryptocurrency] and it is the most valuable one,” Bob Iaccino told CNBC. “But I don't see it as a store of value, because any [other cryptocurrency platform] could come out with a slightly better technology and completely replace bitcoin.”
Gold is a good buy at $1,265 level, added Stutland, who sees the yellow metal trading at $1,285 by December expiration, with a key support level at $1,250.
“The volatility is tremendous, so you're going to see wild swings in here and that is something to be aware of,” he said.
Gold has been rallying due to its safe-haven appeal as tensions between the U.S. and North Korea continue to heighten.
December Comex gold was last seen trading at $1,292.10, up 1% on the day, nearing a two-month high. Bitcoin, in the meantime, has come off its record high and is now trading at $3,461.37, up 2.48% on the day.
North Korea kept the tensions at their highest on Thursday by again threatening to unleash an “enveloping fire” in the coming weeks, once again specifically targeting Guam in its statement.
This comes after U.S. President Trump’s comments on Tuesday that the world’s strongest military could unleash “fire and fury” on North Korea if it keeps threatening the U.S. with nuclear missiles.