Bloomberg: The Power of Gold and Bitcoin in 2020

According to Michael McGlenn, Bloomberg Commodity Strategy Officer; Among the few assets investors are looking for this year, gold and bitcoin are laying the groundwork to push their prices higher than they already are. After them, metals are the top investment for 2020, and all of this is due to the Corona virus leading the way around the world .

Comparison of gold and bitcoin over several years

Both gold and bitcoin have been stabilizing at current prices and preparing to take the lead over the past few years. In fact, each ounce of gold has risen above $ 1,700 and each bitcoin has risen to $ 9,000 .
Michael McGlenn noted that gold charts show a resistance above the current resistance level of $ 1,700 per ounce. With each passing day, the relevant levels show stronger and more stabilization in terms of the level of price resistance and prepare to go higher. Bitcoin shows the same behavior and varies between $ 9,000 and $ 10,000. In fact, the analysis of this chart gives us a basic overview of the 10-year trend of each of these two. At present, gold is superior to any other commodity in the market, and there is still plenty of room to advance and raise its prices. In fact, gold is the best source of investment and profitability against fiscal policies as well as inflation and other factors.

The Impact of the Corona and the US-China Tensions on the Gold Market Trends
Despite the tensions between the US and China, as well as how the global economy is recovering, our forecast for other commodity prices is negative, but for gold it is different. It is less of a factor that can hinder the development of the gold price index. In fact, the corona virus has created the conditions for central banks to be affected and gold prices to rise.

Gold will continue to outperform silver and will continue to lead this year. In fact, looking at the history of the gold and silver scales, this trend has always been this way and is always superior to gold. Government assets are an important factor in determining economic demand and inflationary pressures, and silver has always been more responsive to this factor. Gold will continue to overtake silver until central banks succeed in restoring economic growth.
The Fed's strongest reaction in history, along with the rise of the dollar, has kept gold ahead of silver, and if we look at history, we are still facing the same situation .