Gold Under Pressure!

 #CrazyGold#  #XAU/USD#  #goldfall#  #OPINIONLEADER#  #forextrading# 

The price is Gold is now under much pressure as Bitcoin gains investors’ interest. The precious metal may suffer if Bitcoin finally becomes property for investors. 

I attended a Space discussion on Twitter, which was hosted by Michael Saylor, the co-founder of Microstrategy, where new development on the adoption of Bitcoin as a property was discussed. He also encouraged fund managers to allocate some of their investment funds to Bitcoin. 

Furthermore, German law has made it possible for institutions to invest in Bitcoin. The law became effective on Monday, August 2, 2021, and it allows 20% of pension funds to be invested into Bitcoin. 

With the new investments and adoption of Bitcoin by big institutions, the price of Bitcoin keep soaring while Gold price plunges. Bitcoin price is now trading above $40k. 

It’s quite reasonable to think that investors are closing their long positions on Gold to buy Bitcoin. Although, Gold still has the largest market capitalization. 

Technically, Gold buyers lost momentum as price reached 1831 during the New York opening on Wednesday, after the ISM service PMI data came out higher than forecasted. Gold price dropped to 1810 in less than an hour, erasing all its 5hours upward movement. 

I had long positions on Gold before the news came out but I have closed all after the strong red candle erased all the upward movement. Buyers find it difficult to keep price above 1830. 1810 is the next support level and once cleared, Gold might make a new low below 1750.