On Monday, the price of gold quickly fell to its lowest level since March as a lightning crash sent prices below $ 1,700 an ounce.
According to TradingView, the price of the precious yellow metal plunged to $ 1,690 / oz during Asian trading hours on Monday. The price of gold has since rallied slightly, last changing hands at $ 1,742 / oz at the time of writing.
Gold is currently down 4% over the past seven weeks and 8.7% since trading above $ 1,900 / oz in late May. The precious metal has fallen 8% in 2021 so far, and it is currently down 14.6% from its all-time high in August 2020 just below $ 2,040.
How the hell did I sleep for that golden flash crash pic.twitter.com/2Foy7WiOwB
– Président Everything-Will-Pump ™️ (@chairmanlmao33) August 9, 2021
Currency trader and charts guru Peter Brandt attributed the crash to wholesale closeouts, declaring, “This has all the fingerprints of a bank / brokerage doing a forced liquidation on a huge leveraged speculator. “
He noted that the leverage ratio in the Chicago Mercantile Exchange gold markets is around 15 to 1, suggesting that highly leveraged traders are boosting gold price action.
Analysts at London-based City Index also blamed Monday morning’s crash on “stop-loss sales in very tight market conditions.”
However, unemployment figures in the United States were also a catalyst for falling commodity prices last week. The unemployment rate fell more than expected to 5.4% from 5.9%, a new low in the pandemic era, according to a Bureau of Labor Statistics report released on Friday. Along with the job market and the economy, the US economy as a whole continues to recover. Index of cities concluded:
“The best jobs data has pushed up the yields of the US dollar and US bonds, which is never a good formula for commodities. “
With Bitcoin (BTC) currently worth 25 ounces of gold, Bitcoin is down 28.5% from its all-time high against gold – with a single BTC worth 35 ounces of gold during the Bitcoin’s record price of nearly $ 65,000 in mid-April. However, 1 Bitcoin was worth 15.5 ounces of gold at the start of 2021.
At the time of writing, BTC had fallen 2% in the past 24 hours to trade at $ 43,667, according to CoinGecko.