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Bitcoin, Gold And Silver Up Big; What Gives?

Commentaries & Views

Tuesday was an interesting day in the alternative asset class. Gold and silver continued the rally that they started two weeks ago, recovering most of the loss, and pushing well above the key breakdown level of $1,265. The rally is in the height of the holiday season on declining volume and is probably more short covering than new money buyers. 

Bitcoin recovered all of Friday’s losses and closed much higher on the day. The volume was heavy and looked more like new money and short covering, all a part of the Bitcoin bubble. Make no mistake -- Bitcoin is in a bubble, but that can happen with any asset class. Cryptocurrency is real and here to stay.

With equities still working higher, it will make it difficult for gold, silver and cryptos to continue to rally. These rallies look more like opportunities to sell and should fail at these levels. There is no real power or support and although they have gone farther than we expected, there will be better levels to buy.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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