'Buy Bitcoin' Beats 'Buy Gold' In Google Search Trends
(Kitco News) - The online search phrase “buy bitcoin” is now more popular than “buy gold,” according to the latest data from Google Trends.
The tide began to change in favor of bitcoin only in the spring of this year, with “buy gold” search phrase completely dominating the field prior to that.
On average, gold still wins out in 2017, but this might not be for long, as shown on the Google Trends chart.
Gold prices have had a good year so far, up about 11%. The month of September was the main highlight, with the yellow metal reaching a one-year high, but then retreating below $1,300. December Comex gold was last seen trading at $1,277.20, up 0.11% on the day.
Kitco’s senior technical analyst, Jim Wyckoff, points to higher U.S. dollar as one of the main elements keeping gold prices restrained. On Tuesday, the U.S. dollar index touched a 5.5-month high and then declined to $94.81.
“Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80,” Wyckoff said in his PM Roundup.
Gold will need some sort of additional geopolitical risk in order to break out of its current range, said Peter Hug, global trading director of Kitco Metals.
“Unless President’s Trump visit to South Korea today creates some geopolitical noise or a reversal of fortune hits the equity markets, there is very little in the way of catalysts to push gold above the $1,282 level,” Hug said.
Bitcoin, on the other hand, surged more than sevenfold in 2017, breaking all imaginable records, including the $5,000, $6,000 and even $7,000 levels for the very first time.
Over the weekend, the popular digital currency hit a new all-time high of $7,598, but was not able to hold onto gains and dropped down to $7089.20 on Tuesday.
Some analysts worry that this kind of price moves cannot be sustained for too long, warning of a bubble and cautioning investors not to buy bitcoin if it jumps above $8,000.
In a note published on Sunday, Goldman Sachs said that even though bitcoin could potentially hit the $8,000 level, it could be its last high, at least for a while.
“The market has shown evidence of an impulsive rally since breaking above [$]6,044,” Sheba Jafari, Goldman’s technical analyst, said in a note. “Next in focus [$]7,941. Might consolidate there before continuing higher.”