Gold and Bitcoin Hit My Targets
Struthers Report V29 # 5.1
Gold and Bitcoin hit my near term targets and Oil closed above $83.
I had a target on gold of $2070 and yesterday June Comex gold hit a high of $2063 so close enough for target met. I am expecting gold to break above $2070 but it will probably consolidate some between here and $2,000 before breaking out.
It is worth repeating that Gold is a highly liquid asset, which is no one’s liability so carries no credit risk. Historically it has preserved its value over time.
March saw gold ETFs net inflows of US$1.9bn (+32t) for the first time in ten months, but this was not enough to prevent the net quarterly outflows of US$1.5bn (-29t)
Central bank gold buying momentum showed no signs of stalling in February. Reported global gold reserves rose by 52t during the month – the eleventh consecutive month of net purchases – following January's 74t.
On a y-t-d basis, central banks have reported net purchases of 125t. This is the strongest start to a year back to at least 2010 – when central banks became net buyers on an annual basis.
My April 8th substack comments on Bitcoin was that there was resistance around $30,000 so might as well consider selling then at over $28,000. On Tuesday Bitcoin moved to over $30,000. More than 87% of all BTC future trades liquidated in the past 24 hours at that time were short, or bets against a rise in prices, CoinDesk reported. Losses from these trades amounted to some $145 million in the process. It appears a lot of this rally was on a short squeeze, an indicator to me that this rally could be a last gasp in this roughly one month up move. Plus it moved into long term resistance on the chart.
I mentioned resistance is around $30,000 and Bitcoin hit almost $31,000. Looking at the chart an extreme to 32,000 to 33,000 would not be out of the question, but regardless I would be selling or taking some profits here.
And one last thing is Oil. I commented that I wanted to see a solid close above $83 to signal a break out. We got a close of $83.26 on Wednesday. The break out looks a bit undecided to me, but never the less, I now believe we will be in a higher trading range. I would not like to see a close below $79 and on the upside we should see a move to around $88.
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