The gold is looking good

The financial markets are once again optimistic. They are STILL (!) living by E. Macron’s victory in the French presidential election. But it was a stress for the multinational corporations. Le Pen could hypothetically cause them significant losses with her fight against globalisation.

Thus, Macron’s victory torpedoed the gold. The price returned where it has been last time in March. The investors are not fearing the political instability anymore but they are rather looking at the interest rates and as it is known the gold is not carrying any interest which should lower its price even more. The current price is 4 dollars under the 100-day average - which is not a bad price for buying. Why?

Unlike others, I am assuming that Macron’s winning doesn’t mean we have all the complications behind us. Korea is going to return like a boomerang. And there is one more thing: There is a new indicator of the risk apart from the gold and that is bitcoin. It has always been growing when somewhere on the planet the governments are getting stricter. One time it was Cyprus, one time India and one time China. Bitcoin reached its new all-time high yesterday.

It reached even to 1750 dollars at one moment. Its exchange rate was 778 dollars a year ago and less than a month 1150 dollars. So the investors seeking the risk are seeing risk even now after Macron’s victory. To buy bitcoin now in this phase of the sinusoid is in my opinion too late but the time doesn’t have to be bad for gold...