Gold Records Sharpest Single-Day Drop in Over 2 Months: Is The “Metal Season” Ending?
Gold experienced its steepest one-day drop in over two months, sparking debate over whether capital is rotating into crypto assets.Summary
Gold plummeted over 5% on December 29th, marking its largest single-day loss in over two months, with silver, platinum, and palladium also seeing significant declines amid an earlier rally. This sharp pullback coincided with a recovery in the crypto market, leading some analysts, like Crypto Rover, to suggest capital was rotating from precious metals into Bitcoin and other cryptocurrencies. However, metals rebounded the following day, with gold up nearly 1%, leading to divided opinions among experts. Proponents of the continued metal rally argue the drop was merely a crowded trade unwinding, citing gold's historically strong momentum, such as trading above its 200-day moving average for 550 days. Conversely, others, including analyst Michaël van de Poppe, point to technical bearish divergences in gold and a bullish divergence on the BTC/gold chart, suggesting Bitcoin may be poised to outperform gold, signaling a potential major rotation away from metals.
(Source：BeInCrypto)