If you caught our Mid-Week Bulletin on Wednesday this week, you’ll know that gold has been surging forward this week, coming within sight of equalling last year’s all time price high around the £1,411 ($2,000) marker.
As we reported then, the newly invigorated bulls are said to have taken some of their power from deflating cryptocurrencies. The good news for gold is that this downward trend is likely to continue with the Biden administration dealing a hammer blow to the crypto community.
Yesterday (Thursday) the U.S. Treasury Department announced that it considered crypto currencies to be a tax evasion risk and it would enforce much stricter controls, including a need to report any transactions above £7,026 ($10,000) to the Internal Revenue Service (IRS).
The department said that “Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly, including tax evasion. This is why the President’s proposal includes additional resources for the IRS to address the growth of cryptoassets.” News of the crackdown coincided with a sharp plunge which took crypto currencies to five-month lows – significantly, gold remained strong, trading to a high of £1,324.76 ($1885.30) and maintaining its bullish momentum above the critical support level of the 200-day moving average.
It’s very clear that gold is gathering strength with an unbroken upward trajectory on the horizon. With factor after factor converging in its favour, set yourself up for success by adding the precious metal to your portfolio now.