Bitcoin to Join Gold as a Safe Haven?

The gold price finished slightly lower on Friday marking its first weekly loss since the start of the year, and failing to benefit on weaker than expected data from the US.

Gross domestic product figures hit the market from America on Friday at 1.9 percent, below analysts’ expectations for a figure of 2.2 percent and well short of last month’s reading of 3.5 percent.

The gold price was unable to capitalize on this event and after jumping $5 on the news, gave back the gains and then some to finish the week at $1,191 an ounce.

For a technical point of view, the gold reached back to $1,200 mark and currently is trading on these levels.

“Resistance in gold prices is unchanged at $1220.20, this week’s high, still biased to the upside as long as gold closes above $1183.” says the latest technical analysis from Canadian-based Scotia Bank’s New York bullion team.

ING analyst Hamza Khan shared his thoughts, and noted that gold had to take a breather after a 4 week winning streak,

“The dollar is being a big influence on gold right now, so that’s what’s behind the current move,” he said,

“But overall I think the weeks of gains we’ve had are more indicative than this pull-back, which might just be due to people locking in some profits and waiting for the Fed meetings before they get long again.” He added.

In a startling revelation, Bobby Lee, the CEO and cofounder of BTCC, one of China’s three biggest bitcoin exchanges, claims that bitcoin will be up there in the nearest future alongside gold as a safe haven as it avoids government interference by central governments unlike regular currencies

“I think the world is starting to realize that, just like gold is a good hedge, bitcoin is a great hedge against the system because it’s outside the system” he said.

“Gold is sort of the hedge against the system, the status quo. Our society is ingrained with the current monetary system of fiat money, where governments issue it, they can put out as much of it as they want. Today’s money system, in a very rude way, it’s no different to airline miles or hotel reward points.” He added.

The review was prepared by FIBO Group analyst Andrew Masters.