Gold at Triple Top

Gold has been saturating the area between $1,300 and $1,200 for the past six months as price is having a hard time going above the psychological level of $1,300. Currently Gold is hovering around $1,280-$1,285 which makes it vulnerable to bear attacks.

If the lack of stimulation in the Gold market continues, we can expect Gold prices to turn their direction yet again to the downside. Given how big of an impact Bitcoin is having and how rapidly it is growing in market cap, a big chunk of Gold investors might allocate their capital in the cryptocurrency market.

Should this be true, then we can expect Gold prices to reach major support at $1,200 in the near future. On the other hand, one thing is for sure - even if Bitcoin ceases to exist, Gold will be there ready to take investors on the safe side at any given time.

Chart: XAU/USD D1