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One of the most volatile markets in the world, cryptocurrency investors need strong hands to hold on during price swings that can shake out all but the most committed.

To limit exposure to this volatility, investors can hedge against the market, using futures contracts, shorting, or one of the most simple methods—trading cryptocurrency for a stable asset, like a commodity, fiat currency, or stablecoin.

But while the best hedging solutions have a heritage that can be traced back thousands of years, the worst of them reflect the same flawed banking system to which bitcoin provides an alternative.

💲 Hedging with Fiat-backed Coins

The key advantage of hedging with fiat is accessibility. Stablecoins, which are blockchain tokens pegged to national currencies, can be traded on most popular exchanges, but this convenience comes at a cost.

There are several varieties of stablecoin that rely on different mechanisms to maintain stability—fiat-collateralized, which rely on a stockpile of assets theoretically backed 1:1 to the tokens; crypto-collateralized, like Maker’s Dai which relies on ethereum kept in storage, and algorithmic stablecoins, which rely on code to maintain the stability of the coin.

Tether, the original fiat-backed stablecoin, is by far the most popular option for traders to switch into when bitcoin starts to fall. But while it might have the most adoption, being second only to bitcoin in daily traded volume, it presents several risks over the short and long-term.

Pegged to the dollar, Tether and other similar stablecoins are subject to instability from the underlying currency. And, subject to more instability from local market forces that often wrench Tether away from its perch at $1 dollar. In fact, the leading stablecoin has fluctuated between $0.95 and $1.01 as traders move in and out of the asset during periods of high bitcoin volatility.

The range of Tether's volatility

Also contributing to this volatility is lack of trust. During the few years of its short lifespan, the stablecoin has often been caught in controversy—sending the price plummeting as traders scramble to get rid of the token.

These controversies usually involve lack of transparency, with Tether being unable to prove that they hold the equivalent dollars in reserve, or even on one occasion admitting that some holdings have been invested in bitcoin.

Over the long-term, these crises of faith become insignificant, with the stablecoin eventually crawling back up to its 1:1 peg against the dollar once the news blows over. But, for investors with a long-term plan, fiat-backed stablecoins present another problem.

As it is pegged to the dollar, Tether and all other fiat-backed currencies steadily lose value all the time due to inflationary forces—a problem which goes right to the heart of the current banking system, and something that famous economist Maynard Keynes himself commented on:

“By this means (fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.”

– John Maynard Keynes
Pros Cons
Available on most exchanges Unstable
Opaque operations
Loses value over long-term
👑 Hedging with Commodities

Traditionally, gold is used to hedge against the decline of currencies or equities, which often have an inverse correlation with the metal. But while gold doesn't yet have any clear correlations with bitcoin, it has several advantages as a hedge in the cryptocurrency market.

Unlike national currencies which have a nasty tendency to eventually go to zero, the value of gold can be expected to rise over the long-term.

For example, over the last ten years gold has appreciated 37 percent in value, whereas the US dollar has lost 16 percent of its relative buying power.

Over twenty years, this is even more pronounced, with gold gaining 411 percent, and the greenback losing over 22 percent of its buying power.

This is because commodities are theoretically immune to the inflationary and political forces that gradually debase fiat currency, making them a good choice of hedge for the long term investor, who might wish to balance exposure between bitcoin and gold as a way of guarding against volatility in either asset class.

For residents of countries in economic turmoil where inflationary forces are in overdrive, like Venezuela, Argentina and Nigeria, commodities are even more appealing as a hedge.

The only downside is the potential cost and inconvenience of swapping bitcoin for an asset like gold—which can be a cumbersome process without the proper infrastructure in place.

But because metals are highly liquid, switching can be easy on the right exchange. Vaultoro provides the opportunity to instantly switch into gold from bitcoin, down to an accuracy of 10 cents for maximum inclusion. This gold is kept in secure Swiss vaults and regularly audited, and investors are able to check holdings via Vaultoro's proprietary Glass Books Protocol.

William Rees-Mogg, co-author of the book The Sovereign Individual that almost predicted bitcoin thirty years before Satoshi Nakamoto arrived, had this to say about gold:

“To prefer paper to gold is to prefer high risk to lower risk, instability to stability, inflation to steady long term values, a system of very low grade performance to a system of higher, though not perfect, performance."

— William Rees-Mogg
Pros Cons
Likely to gain value over time Higher storage costs than fiat
No KYC requirements below $5000 per member per day on Vaultoro
Immune to inflationary forces
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Hello Vaultorians, and welcome to another weekly price analysis!

BTC/USD - Bitcoin on the Stairway to Heaven

Bitcoin is now trading at $6,273 and has continued to show strength this week, gaining around 14 percent since the last update.

This comes despite the presence of significant resistance at $6,000, which has been recaptured despite significant uncertainty in the crypto markets - Bitfinex has been sued, Binance has been hacked, and the Tether saga has continued.

Nevertheless, price action continues to be bullish and bitcoin is now continuing to create higher lows and lower highs. As the price pushes up in this stair-stepping way, buyers are stepping in with orders at the immediate levels below.

Until now, this has prevented any pullback, as Each drop then falls back to the lower stair, where buyers ready waiting to catch falling price and push it back up.

The next area of resistance for bitcoin is at $6,350 - $6,400 - a region that saw significant trading in 2018 . A flip to support above $6400 would be very bullish, and is likely to induce FOMO among those same traders whose short positions helped fuel the rally of the last two weeks.

If we do pullback from here, support is likely to be found at $6,000, or at $5,700.

XAU/USD - Gold Boosted by Trade Talk Uncertainty

Gold is trading positive on the week, and is up one percent as risk appetite falls following an escalation of the US-China trade conflict.

On Wednesday, Trump said that China “broke the deal” in trade talks and would face an increase of tariffs from 10 to 25 percent on the $200 billion of Chinese goods imported to the US.

This sent a tremor through the stock market, and pushed gold up on increased safe haven appeal, but the rally was short lived as Trump then claimed to have received a "beautiful" letter from China Premier Xi Jinping, suggesting once again that the situation could soon be resolved.

This capped upside on gold, which has since remained relatively still as traders await the start of more trade talks on Friday, which are likely to set the tone for the next few days of trading in gold.

On the charts , the metal is now trading in a descending channel, with a bearish trend-line at the top that is likely to act as resistance to any attempt to move up. This intersects with further horizontal resistance at the former support level of $1,289, representing the first hurdle for bitcoin to jump on the way back to previous highs.

If we move lower, which might be a possibility if US-China negotiations go well on Friday, then the next stop is at $1,277 region, before the previous double bottom support at $1,266.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.

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Hello Vaultorians, and welcome to your weekly analysis on bitcoin and gold!

BTC/USD - Bitcoin Short Squeeze Imminent?

Bitcoin is now trading at $5,478 — a 6.3 percent increase on the week, and an over 30 percent gain on the month of April.

Last week’s Tether FUD failed to generate significant downturn, causing only a short-lived pullback to the $5,000 region before the uptrend resumed. But the claims against Bitfnex have also had another effect — exacerbating the ‘Tether Premium’, which has now returned with a vengeance, and bitcoin traded against Tether on Bitfinex is commanding prices over $350 higher than on dollar exchanges like Bitstamp.

General uncertainty around this situation, along with bitcoin now retesting a major resistance bank, is leading traders to load up on short positions, which are rapidly rising on the Bitfinex exchange.

As these short positions will have stop loss buy orders above the price, which could now act as fuel for a short sharp move upwards.

Key resistance is now at the $5,500 level, which if broken could yield a move towards the next resistance zone at $5,800 - $6,200.

If we see a pullback, then price is likely to find support at $5,100, and then $5,000, which has been shown to be an area of significant demand.

XAU/USD - Gold Falls on Fed Statement

Gold is now trading at $1,272, a 1.4 percent drop since the last market update seven days ago.

On the economic calendar this week, the main event was Wednesday afternoon’s Federal Open Market Committee (FOMC) statement and press conference from Fed Chairman Jerome Powell, which made no changes to US monetary policy but still managed to push gold lower.

Though the statement didn’t give any clear consensus on what the next Fed interest rate move will be, some members stated concerns that inflation is too low. But, at the same time, the causes for this inflation are thought to be transitory, and Powell was generally positive on the prospects of the US economy, suggesting a lower chance of interest rate cuts anytime soon.

This news put a bid under the dollar, and pushed gold lower on Wednesday afternoon to meet near four-month lows.

Elsewhere, Central Banks have been continuing their buying spree of 2018. This is revealed in a report from the World Gold Council, which finds that central banks, led by China and Russia, have bought the most gold in the first quarter of the year since 2013.

On the chart, a double bottom pattern has now formed, suggesting strong buying support at the $1,266 level. A strong follow through from this move could push the price back up to the key bullish perch of 1,300.

On the bearish side, a downtrend has clearly been forming over last few weeks, the upper bound of which will present an initial hurdle to any upward movement. Should more downside be in store, further support can be found at $1,250 - $1,255.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.

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Hey hey Vaultorians, welcome to another weekly analysis on bitcoin and gold!

BTC/USD - Bitcoin Falls on Bad News From Bitfinex

Bitcoin is now trading at $5,175 after hitting highs around $5,600 earlier in the week.

Several weeks of bullish price action have given way to a pull back, which is fueled by both technical and fundamental factors.

Bitfinex, one of the biggest crypto exchanges, has been accused of fraud. The exchange is alleged to have lost $850 million, and used funds from affiliated stablecoin operator Tether to cover the shortfall. This has sent a wave of FUD through the market, as traders on the platform withdraw their assets rather than face an uncertain future.

Technically, this pullback was also preceded by a bearish RSI divergence on the daily chart, which suggests more downside could be on the way.

This comes despite the completion of a golden crossover, where the 50-day moving average (orange) has now crossed the 200-day moving average (blue), suggesting that we are entering a long-term bull market.

If we revisit historic charts from 2015, however, at the end of the previous bear market, we can see that the golden cross that formed on the chart was followed by a death cross — marking a final shakeout before the bull market actually got under way. Should this happen again, and the pullback now move below $5,000, then we are likely to see more downside for bitcoin, which would technically still be bullish down to around $4,200.

If we move up, then it won’t take much for bulls to once again get enthusiastic and start piling into the market, especially if we can break back above $5,400.

XAU/USD - Gold Gains Capped by Strong Dollar

Gold’s recent downtrend has come to an abrupt halt, and the yellow metal is now trading at $1,280.

On Tuesday, a local bottom was formed around $1,267, with long-wicked candles suggesting that each new low was being quickly bought into. This is a bad sign for bears, and suggests that the head and shoulders formation highlighted in last week’s update has now been invalidated.

But despite the strong bottom, upside is limited by an equally strong dollar. The Dollar Index (DXY) hit a yearly high above 98.3 on Thursday after stronger than expected US home sales boosted confidence in the US economy.

Even though gold has a strong inverse correlation with the dollar, these gains are not weighing too heavily on the metal, which could be due to increased safe haven appeal from tensions between the US and Iran, and poor economic data from stock markets around the world including Germany and South Korea.

Looking ahead, gold is now clearly at an inflection point, but remains bullish as long as it can hold above $1,280.

Any move lower is likely to find support at $1,267, a level which if broken, is very likely to lead to further downside.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.

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Welcome Vaultorians, to another weekly analysis on bitcoin and gold!

BTC/USD - Bitcoin Bulls Gain Confidence

Bitcoin has continued its grind upwards this week, and is now trading at $5,240.

After acting as strong resistance, the key level of $5,000 is now forming strong support on the daily timeframe. On lower time frames, more levels of support can be found at $5,100 and $5,200.

Price action continues to show consistent and aggressive buying, with each dip down to these support levels bought up rapidly, creating lots of long bottom-tailed candles.

When the $6,000 level was broken in November last year, bitcoin plummeted, and the price is now trading through the region below $6,000 and building a structure for future price to rest on. In this sense, the consolidation we are seeing is a very bullish sign, and suggests that even if we do see future pullbacks, the region will now be able to act as strong support.

Another technical indicator is also suggesting bullish price action — the golden cross, of the 50 DMA and 200 DMA, looks set to take place soon. The last time this happened was in July 2015, shortly after the bear market reached a bottom. However, we did see another death cross, where the reverse occurred, around two months later when bitcoin pulled back again before finally letting rip to the upside.

$5500 - $5550 is now the key area of resistance to watch. If bulls can manage to break through this region, then the price is very likely to head to $5,800.

That said, between $5,800 and $6,200 are likely to be lots of sell orders, which could prompt a strong reaction from this level pushing the price significantly down.

If we move lower from here, support could be expected at $5,200, $5,100, and $5,000.

XAU/USD - Gold in Danger of Further Downside

After one of most bearish weeks of the year so far, gold is trading at $1,275 — a 2.5 percent drop since the last update

The ominous head and shoulders pattern that has been threatening to form on the chart, has now come to fruition, and gold is at its lowest position yet for the year.

In the fundamentals, optimism in the US-China trade talks has boosted the dollar this week, weighing heavily on dollar-denominated gold.

On Saturday, US Treasury Secretary Steven Mnuchin said that talks between the two countries were progressing well, and suggested that the final round of negotiations could be close. In addition, rising US Treasury yields, on the back of strong retail data, has also contributed to the bearish case for gold by making the dollar a more attractive investment.

If we do break down further, the abstract head and shoulders formation would give a target around $1,225, and the nearest significant historic support region is at around $1,183.

But we could also see a temporary reversal at $1,252 and $1,230, or a bottom if enough buyers step in.

If we manage to claw back above support at $1,277, then we really need to get back above $1,300 before the bulls will once again have an edge.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.

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Welcome Vaultorians, to another weekly analysis on bitcoin and gold!

BTC/USD - Correction or Reversal for Bitcoin?

After testing resistance at $5,460, bitcoin’s recent rally has turned around, and the leading cryptocurrency is now trading at $5,032.

With almost two months of sustained buying pressure, and seven consecutive green weekly candles, this retrace has come as a shock, and traders are now asking if this move down is a healthy correction in a continued uptrend, or a reversal, indicating significant more downside in store.

As seen on the daily chart, the retrace so far is quite shallow, reaching only to the support area at the 0.236 fibonacci level.

If we can manage to hold support here at 0.236 ($4,915), then the market structure is still bullish, and will remain bullish up to the point that a retrace moves below the larger green demand zone around the 0.5 Fibonacci level ($4,200-$4,400) — a region which previously acted as strong resistance.

On the hourly chart, long wicks at the bottom of the candles at $5,000 indicate solid defense by the bulls. But, volume on these candles is low and continues to descend, suggesting weakness and the possibility of more downside.

If volume returns and the price moves up, then we could soon exepect another test of $5,500.

XAU/USD - Gold Rally Stalls at Resistance

After a volatile week, gold is now trading at $1,295.

A double whammy of poor economic data releases on Tuesday helped gold’s cause, renewing its safe haven appeal and catalysing a rally to test the $1,310 level.

This consisted of poor economic data from the US, with job openings dropping to 7.09 million, from 7.54 million in the previous release, and a cut in the global growth forecast from the International Monetary Fund. Both helped put the shine back on gold, which surged above the symbolic $1300 level to hit two week highs.

But, $1,310 proved too high a hurdle for gold to jump, and the price retreated, only to break back through $1,300 on Thursday after a spate of positive economic news.

On Brexit, leaders agreed to a flexible extension of the deadline until Oct. 31, and in the US, Treasury Secretary Steven Munchin said the US and China have agreed on a mechanism to police trade agreements, fueling investor optimism.

Also released were minutes of the Federal Reserve’s March meeting, revealing that the majority of Fed members expected rates to remain on hold in 2019, which, being bearish for the dollar, should help to put a bid under gold in the coming weeks.

Technically, gold once again needs to get back above the $1,300 psychological level in order to avoid further downside. Holding this level will reintroduce the possibility of revisiting the highs at $1,350.

If we move down, a break below $1,278 is likely to bring significant further downside.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before trading or investing.

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Welcome Vaultorians, to your weekly price analysis!

BTC/USD - Is the Bitcoin Bear Market Over?

After a monumental week, bitcoin is now trading at $4,956 — an increase of 23 percent since the last update.

Weeks of inching up in the ascending triangle pattern finally gave way to a face-melting pump on Tuesday, with bitcoin gaining $750 dollars in only 30 minutes.

The move was accompanied by a major spike in volume, and put bitcoin straight through the 200 day moving average (shown in orange) which typically represents the dividing line between bull and bear markets.

On the weekly chart, this pump represents a conclusion of the ascending triangle, but also a mirroring of the inverse descending triangle breakout which occurred at $6k -- and it is this $6k level that now represents the next major hurdle for bitcoin to cross on its journey north.

At present, bitcoin is facing resistance at the $5,000 level, a short way down from the new local high which was marked at $5,338.

Having had no significant retrace yet since the pump, we could still expect a further move down to shakeout all the longs that are likely to have jumped in on the bullish momentum. To stay bullish, this retrace needs to stay above support at the $4,500 level, which corresponds to the 0.382 fibb level on the daily chart.

To move higher, we first need to hold support at $5k, and then crack resistance at $5.350- 5,550 before moving on to 6k.

XAU/USD - Gold Coils under Resistance

Gold has stayed relatively stable this week, and continues to consolidate under resistance at $1,293.

At present the yellow metal is trading at $1,289, and awaits a catalyst which is likely to come later today in the release of the NFP monthly US Labour Report. This could set the tone for the next few days of trading - if the data doesn't meet market expectations, then the dollar is likely to sink and push gold higher. But if the data is strong, then the opposite is likely to happen.

Geopolitically, global worries about recession, and concerns about Brexit, continue to lend support for gold. UK Prime Minister Theresa May wrote to Donald Tusk on Friday morning (GMT), seeking an extension for Brexit until June 30th.

Looking ahead, if gold sinks, then a close below $1,282 is very likely to trigger further downside. This level forms the neck-line of a very rough head and shoulder reversal pattern, which if broken could send the price down to the next support level at $1,268.

If gold regains its appeal and pushes through resistance at $1,293, then the next significant resistance lies at $1,301, which if recaptured could set a bullish scenario back into play.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before making any investment.

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Dear Vaultorians,

Wanted to send you an April update.

Vaultoro sponsoring the BOLT-A-THON online hackathon/Conference

The Bolt-A-Thon is the world's first online Lightning Network conference and hackathon. Tickets are $10 per session and feature Lightning pioneers such as Alex Bosworth, Rusty Russell, Fabrice Drouin, and Max Hillebrand.

Buy your tickets now with lightning or on-chain!

April Volumes On Vaultoro Sky Rocket As Traders Hedge Bitcoins Huge April Gains.

In the last three days, we have seen bitcoin's booster rockets fire with around about 25% value increase!

In these first three days of April trading, we have seen more volume than the entirety of March! Will we see a 2k correction like many of our buyers think or will crypto keep going to 6K as our sellers think? Only time will tell.

We sent out a survey a few weeks back and asked our users why they use Vaultoro. The answer is often the same:

"Why should I trust Tether or these un-insured, un-audited fiat coins when I can hedge crypto profits in insured and audited allocated gold?"

It's great to see the world waking up to the fact that rare numbers like bitcoin work exceptionally well with rare metals like gold. Gold is a perfect way to take profits bank independently utilising world class top tier private Swiss Vaults and LBMA regulated and understood gold standards.

We wish you and your loved ones a happy, healthy and profitable April.

Joshua Scigala
CEO
Vaultoro.com

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Welcome Vaultorians, to your weekly price analysis! The crypto market is surging, but precious metals have taken a hit — read on to find out more.

BTC/USD - Bitcoin Holds $4,000

Bitcoin is now changing hands for $4,026, a ~1.3 percent increase over the week.

The leading crypto has seen significant volatility, and dipped down to test support around the $3,900 level before finally gaining enough momentum to break through the $4,000 level.

This drop tested the bottom trendline of the bull channel, which still remains intact — suggesting further upside could be in store.

At present, the price is holding strong above the $4,000 level, and pushing against resistance at $4,040 - $4,200. This is now the fourth test of this resistance, and each time it is tested, the rejection is slightly weaker, suggesting that we could soon be set to pass through.

Sentiment on Crypto Twitter has also shifted over to the bullish side, but the fear and greed index remains at 50 — suggesting there is still some indecision in the market.

Although bears have clearly lost strength over the past few weeks, a significant move beyond $4,200 still looks unlikely. More likely perhaps, is that we are entering a transitional phase, of endless sideways grinding, before bulls once again can win out.

Looking ahead, if bitcoin manages to hold above $4,000, then the next key test will be at the $4,200 region — this swing high from February needs to be cleared with strength to open the path towards $5k.

If we do move down and break $4,000, then strong support is likely to be found at $3,900, or the yearly open at $3,700.

XAU/USD - Gold Loses Grip of $1,300

The week has been bearish across precious metals, with palladium down ~15 percent, silver down ~3 percent, and platinum down ~2 percent.

At only ~1.6 percent down, gold has taken the smallest loss over the last seven days, but has still lost critical support at $1,300 after the dollar pushed up against the pound and other world currencies.

Ongoing Brexit talks, and positive developments in the U.S. China trade talks have put a bid under the greenback— a report on Thursday suggested that the meetings in Beijing had taken a constructive turn, causing investors to buy up the dollar at the expense of safe haven gold.

But recent comments from San Francisco Fed President Mary Daly suggest that demand for gold could eventually increase — she said on Tuesday that the appropriate policy was being patient, leading economists to speculate that the Fed are done raising interest rates until 2020.

More fears of recession could also bolster safe haven demand for gold. The U.S. 10-year Treasury yield fell below that of the three-month bill for the first time since 2007 last week, which is a sign of impending economic slowdown.

On the charts, the outlook now looks distinctly less bullish, with high potential for choppy price action moving into April.

Support can be found at $1,280, but if this is broken, then a head and shoulders pattern would have formed over the past three months, suggesting further downside in store.

If we manage to move back up, first resistance is to be found at $1,300. Breaking through this level will put gold back on the bullish track, with the outlook again favouring $1,350.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before making any investment.

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Welcome Vaultorians, to your weekly price analysis! The crypto market is surging, but precious metals have taken a hit — read on to find out more.

BTC/USD - Bitcoin Holds $4,000

Bitcoin is now changing hands for $4,026, a ~1.3 percent increase over the week.

The leading crypto has seen significant volatility, and dipped down to test support around the $3,900 level before finally gaining enough momentum to break through the $4,000 level.

This drop tested the bottom trendline of the bull channel, which still remains intact — suggesting further upside could be in store.

At present, the price is holding strong above the $4,000 level, and pushing against resistance at $4,040 - $4,200. This is now the fourth test of this resistance, and each time it is tested, the rejection is slightly weaker, suggesting that we could soon be set to pass through.

Sentiment on Crypto Twitter has also shifted over to the bullish side, but the fear and greed index remains at 50 — suggesting there is still some indecision in the market.

Although bears have clearly lost strength over the past few weeks, a significant move beyond $4,200 still looks unlikely. More likely perhaps, is that we are entering a transitional phase, of endless sideways grinding, before bulls once again can win out.

Looking ahead, if bitcoin manages to hold above $4,000, then the next key test will be at the $4,200 region — this swing high from February needs to be cleared with strength to open the path towards $5k.

If we do move down and break $4,000, then strong support is likely to be found at $3,900, or the yearly open at $3,700.

XAU/USD - Gold Loses Grip of $1,300

The week has been bearish across precious metals, with palladium down ~15 percent, silver down ~3 percent, and platinum down ~2 percent.

At only ~1.6 percent down, gold has taken the smallest loss over the last seven days, but has still lost critical support at $1,300 after the dollar pushed up against the pound and other world currencies.

Ongoing Brexit talks, and positive developments in the U.S. China trade talks have put a bid under the greenback— a report on Thursday suggested that the meetings in Beijing had taken a constructive turn, causing investors to buy up the dollar at the expense of safe haven gold.

But recent comments from San Francisco Fed President Mary Daly suggest that demand for gold could eventually increase — she said on Tuesday that the appropriate policy was being patient, leading economists to speculate that the Fed are done raising interest rates until 2020.

More fears of recession could also bolster safe haven demand for gold. The U.S. 10-year Treasury yield fell below that of the three-month bill for the first time since 2007 last week, which is a sign of impending economic slowdown.

On the charts, the outlook now looks distinctly less bullish, with high potential for choppy price action moving into April.

Support can be found at $1,280, but if this is broken, then a head and shoulders pattern would have formed over the past three months, suggesting further downside in store.

If we manage to move back up, first resistance is to be found at $1,300. Breaking through this level will put gold back on the bullish track, with the outlook again favouring $1,350.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. It is very important to do your own analysis before making any investment.

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