Gold takes a beating, post biggest loss of 2017

Gold took a beating today, posting a loss of $17.10, while ending the day at $1,232.90 according to this Market Watch report.

Gold futures on Thursday suffered their biggest one-day loss of the year, finishing at a more than two-week low, after the U.S. dollar touched its highest levels since January on the back of increased suggestions from Federal Reserve officials fora near-term interest-rate hike.

Gold for April delivery GCJ7, -1.15%  fell $17.10, or 1.4%, to settle at $1,232.90 an ounce. Prices settled at their lowest since Valentine’s Day and saw their largest dollar and percentage decline since mid-December, according to FactSet data.

Despite the hawkish backdrop, “gold finished with only a modest loss on Wednesday—a rather impressive performance considering that the U.S. equity markets also surged to new highs,” said Edward Meir, an independent commodity consultant to INTL FCStone, in a note.

“If we look at gold’s performance over the course of the last five trading sessions, prices have hardly dropped at all, telling us that funds remain committed to the precious metal in light of what they view to be an uncertain U.S. legislative outlook,” he said.

Some investors have also attributed the surge in demand for assets considered risky, like stocks, to an improved outlook for the health of the global economy and President Donald Trump’s well-received address in front a joint session of Congress late Tuesday. Those factors tend to make gold, which flourishes when investors are fearful, less attractive.

Bitcoin is now worth more than an ounce of gold…

It’s a historic day for Bitcoin as the virtual currency has surpassed the price of gold according to this Market Watch report.

One unit of so-called digital gold is now worth more than an ounce of the real thing.

The price of a single bitcoin US:BTCUSD  rose to an all-time high of $1,251.32 on Thursday, surpassing the price of a single ounce of gold, according to CoinDesk’s bitcoin price index. Bitcoin traded on certain Chinese exchanges briefly overtook gold in early February. But this is the first time in the digital currency’s eight-year history that it has done so according to most widely used bitcoin-price benchmarks.

Many bitcoin watchers, including Charles Hayter, chief executive officer and founder of CryptoCompare, a company that provides data and analytics about digital currencies, have pointed out that bitcoin has a positive correlation with gold. They argue that investors are becoming more comfortable with the digital currency, making them more willing to buy it when more conventional markets like stocks are under duress.