The price of gold fell to below $ 1700 an ounce this morning. Admittedly, at the time of writing these words, the rate was already USD 1745, but analysts are wondering if this means the beginning of a bearish in the most popular bullion.
The price of gold has fallen
Gold has fallen about 4% in the last 7 weeks and 8.7% since the price was above $ 1,900 an ounce in late May. The price of the precious metal has fallen by 8% since the beginning of the year.
Famous investor in the gold market, Peter Brandt. claims that the current crash is only the result of some market manipulation. He noticed that there was probably some behind it “Bank / brokerage house”.
I’ve seen similar price action to $ GC_F $ SI_F many times over the years. This has all the finger prints of a bank / brokerage house conducting forced liquidation upon a huge leverage speculator. pic.twitter.com/MXcjwjyTsT
– Peter Brandt (@PeterLBrandt) August 9, 2021
He also noted that the Chicago Mercantile Exchange gold leverage ratio is around 15 to 1, suggesting that traders with high leverage are currently manipulating the price of gold.
Analysts at the London-based trading company City Index say the same. They blamed for today’s morning crash “stop-loss sales in very poor market conditions ”.
Other reasons for the falls
It’s just that the matter is more complicated. The US unemployment data could also be a catalyst for a fall in prices. The unemployment rate fell more than expected – to 5.4% from 5.9%. This is a new minimum since the COVID-19 pandemic began.
In a situation where the labor market and the economy are recovering from the covid crisis, the dollar is also appreciating. This is never good for the gold rate. Kruszec gains in times of uncertainty. Now, the markets are beginning to see optimism – investors probably think that the worst in terms of the pandemic is behind us.
How is bitcoin doing against the background of gold? 1 BTC is worth around 25 ounces of gold today. Bitcoin fell by 28.5% from its highest level in history (1 BTC was worth 35 ounces of gold back then), but it is doing quite well now. On a 7-day scale, it gained as much as 8 percent. Today, one bitcoin costs over $ 43,000
Current bitcoin rate and other cryptocurrencies, you can always check the tabs: rate bitcoin and the cryptocurrency rate at . A place where you can buy BTC and more coins, include cryptocurrency exchange BitBay.net. If you do not have an account on BitBay yet, from this article you will find out how you can efficiently create one: LINK.