Bitcoin Retesting the October Highs

Bitcoin is in the process of retesting the October 17th highs, at least on some of the USD exchanges. On BTC-E prices topped out at $269.76 today, only $3 dollars below the $272.96 high. In the next three hours bitcoin fell to $265.00 but now we’re moving back up again. One coin is selling for $267.16 at the moment.

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On OKCoin’s USD exchange we rallied to a high of $272.71 today, $6 dollars below the $278.79 high reached on October 17th. Futures rallied as well, albeit at a small clip. The nearer October 23th contract spiked to $276.78 today, $10 dollars below the $286.87 high. This futures contract is currently quoted at $274.49 dollars.

The reason futures haven’t come back as strongly is because Chinese bitcoin exchanges are trading weaker. The gap between USD and CNY sites is currently at $6 dollars, with most BTC/USD sites quoting prices around $270 dollars while most BTC/CNY exchanges are trading at 1,557 Yuan, or $276 dollars. You can find a quick snapshot of the major bitcoin exchanges HERE.

Just three days ago this premium was at a fantastic $10 dollars in favor of the Chinese exchanges. After regular financial markets opened on Sunday the USD/CNY exchange rate stayed pretty much the same, with the Yuan gaining slightly on the US Dollar. This probably quelled some of the anti-CNY speculation.

As we’ve previously noted, the price settlement for most futures contracts is derived by a mix of the major USD and CNY sites. Chinese exchanges contribute 50% of the weighting and when they trade higher, the usually pull up futures prices as well.

The important levels remain the same. To end the current rally, we will need to see a break below $240 on BTC-E and $243 on OKCoin. On the other side of the coin a decisive breakout above the October 17th highs at $272.96 (BTC-E) and $278.79 (OKCoin) would reignite the lost momentum higher. Note that the OKCoin levels above are for the USD spot exchange, not futures.

– See more at: http://www.forexnews.com/blog/2015/10/20/bitcoin-retesting-the-october-highs/#sthash.fYmiOrAL.dpuf

Gold Price ‘May Rise’ on Fed Rate Hike But 2015 Investment Sinks as Global Demand Drops 10%

GOLD PRICES steadied against a falling US Dollar on Tuesday in London, trading around $1095 per ounce as Western stock markets bucked another slump in Chinese equities.

Commodity prices also ticked higher, rising from new 13-year lows on Bloomberg’s index, ahead of Wednesday’s expected ‘no change’ decision on US rates from the Federal Reserve.

“It remains our view,” says London-based consultancy Thomson Reuters GFMS, “that a US rate hike this year is already priced into the market.

“An increase [at the Fed’s September or December meetings] could well prompt a review of asset allocations that leads to an increase in gold holdings.”

So far in 2015 in contrast, gold investment in bullion coin slowed to its weakest level since at least 2008 on GFMS’s new data, released Tuesday.

“Retail investment – [meaning] demand for bars and coins – fell another 12% year-on-year” in the April-June period, says GFMS, “and is now some 63% below the Q2 2013 peak” despite strength in Europe, notably Germany.

With the gold price averaging 7% below the first half of 2014, total world gold demand in H1 2015 dropped some 10% annually on GFMS’s data, with jewelry and investment demand from China – the world’s No.1 consumer market last year – dropping “substantially”.

Gold prices in Shanghai today edged higher against London quotes, pushing the premium per ounce – an incentive for new imports – up to $2.50 according to Swiss refining and finance group MKS’s trading desk.

Less demand for gold bullion to use in ‘trade financing’ means imports are likely to fall further from June’s 10-month low, says GFMS.

“All this gold that was used for financing,” agrees Michael Mesaric, CEO of giant Swiss refiner Valcambi – sold this week to Indian jewelry corporation Rajesh Exports for US$400 million – “has been given back.

“There is liquidity in the market and liquidity is cheap. There is no need to use gold anymore,” Mesaric told Reuters, forecasting a drop in China’s imports of perhaps 40%.

Following today’s 1.7% drop in the Shanghai stock market, Beijing assured Chinese investors it will continue to support equities prices after the last 7 weeks’ 30% drop, with the People’s Bank pumping the equivalent of $5 billion into the money market.

“Physical demand in Asia remains lackluster,” says one brokerage today, pointing to “both the Indian and Chinese markets.”

“Market participants,” says a note from South Africa’s Rand Refinery, “will be closely watching the Federal Reserve meeting” for hints of whether a rate rise is coming in September.

Asset Order Perfect Money and BlockChain Update

The admin of Asset Order newly listed at HYIPNews.com has reported about waiting for the support from GoldCoders.com. As soon as they respond instant payments to Perfect Money will be resumed again. This does not affect the rest of the accepted payment methods on the site of the project. Currently, Perfect Money transactions are processed manually in a timely fashion (from 12 minutes to 12 hours) and after receiving assistance from GoldCoders.com they will be resumed back to instant payments. All other payment methods are unaffected by the issue with Goldcoders and Perfect Money. On another note, BlockChain.info is having issues again and that is why the instant payments are not active. The details about the BlockChain issue can be found in the Teitter account. Currently the site is down and once it goes up the instant payments in Bitcoin will be resumed.