Gold Makes History While the New Gold Breaks Through

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The last few days must have been delightful for long-term gold and bitcoin investors. The fundamental signs have been there for a long time. The world is full of uncertainties, the across-the-board market collapse in March has been replaced with unprecedented stimulus packages, and central banks are pumping stock and investment bubble with printing, not billions but trillions of dollars.

XAUUSD long-term outlook

Gold and bitcoin investors are hedging against the collapse of the modern monetary system based on fiat money backed by debt. They argue that both assets may seem to be overpriced, but while the financial system crashes, they will skyrocket. 

On the other hand, fewer and fewer people believe that the USD-based global financial system will hold. However, they also doubt that precisely gold or bitcoin will become the global currency. The price of gold and bitcoin is the result of a speculative battle between gold stackers, bitcoin hodlers, and the skeptics. 

Retracement or reversal on gold?

Will the gold prices continue to go up?

While we can debate about the long term trends, the short term is unpredictable. The fundamental push for gold connected with geopolitics (US-China tensions), global economics (downturn threat), or rising debt is an equally good opportunity to earn money shorting XAUUSD.

Let’s just take a look at what happened today. On SimpleFX, XAUUSD reached historic heights at $1981, only to drop to $1906 seven hours later.  Making a “SELL” order at the right time gave some of our traders up to 378% profit. Just a $277 margin was enough to make $1050 in only a few hours.

Even shorting gold today at the right time turned out to be profitable

Watch out for the upcoming news as well as chart analysis. The historic attack of gold at $2k will increase the volatility.

How about bitcoin?

Both traditional gold and the “new gold,” that is, bitcoin, seem to go on pushing new resistance levels. Investors are moving away from the Fed, and the tensions between the two global superpowers seem to grow. Additionally, the second wave of the pandemic is more and more probable. 

Bitcoin seems to have settled above $10,000

Over the last several hours, BTC seems to have established above $10,000 and even reached $11,400 for a second. There are many strategies to profit from increased volatility. You can hunt for a trend change or try to benefit from Fibonacci retracement trading techniques

Whatever your trading strategy is, we would highly recommend adding both gold and bitcoin to your watchlist.

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