Lightning crash shakes gold markets as Bitcoin holds firm – .

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Lightning crash shakes gold markets as Bitcoin holds firm – .


Gold prices fell during Monday morning’s Asian trading session, compounding losses accumulated over the past week.
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.

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.

BTC price in ounces of gold: Highcharts.com

At the time of writing, BTC had fallen 2% in the past 24 hours to trade at $ 43,667, according to CoinGecko.



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