The price of an ounce of gold dropped dramatically this week, slipping under the $1,700 handle to $1,688 per ounce on August 8. On Monday, gold regained some of the losses jumping 2.36% back above the $1.7K region to $1,727 per ounce of fine gold.
Gold’s Volatile Movements This Weekend Blamed on a Number of Elements
While bitcoin (BTC) prices are up more than 4% on Monday and over 16% during the last week, the value of gold has been dropping lower in fiat value. On August 6, 2021, the price of gold per ounce was trading for just over $1,800 per unit and slid to $1,688 per unit two days later losing 6.22% in value. The precious metals (PM) news outlet Kitco said the drop was due to an “overnight flash crash in gold and silver prices.” The report blamed the crash on “summertime doldrums” and “thin trading conditions.”
Moreover, the Delta Variant strain of Covid-19 has caused alarm across markets, Kitco’s Jim Wyckoff details. Peter Brandt, a veteran futures and FX trader since 1975, discussed gold’s action on Sunday. “I’ve seen similar price action to $GCF $SIF many times over the years. This has all the fingerprints of a bank/brokerage house conducting forced liquidation upon a huge leverage speculator,” Brandt tweeted. The trader added:
The leverage in the futures market for trading Comex (CME) Gold is about 15 to 1. Thus, a leveraged position can get into serious trouble with the type of decline experienced on Friday — resulting in forced liquidation on Sunday’s open.
Peter Schiff Knocks Bitcoin While Gold Is Down, Analyst Sees Gold on Road to Recovery
Of course, given the fact that bitcoin (BTC) was rising in contrast to gold prices, Peter Schiff didn’t sound too pleased about the market action. “Bitcoin rising as gold falls doesn’t mean [it has] replaced gold as an inflation hedge,” Schiff said. “Gold is down as traders mistakenly think the Fed will successfully fight off inflation by tapering QE and raising interest rates. Bitcoin doesn’t trade like gold because it’s not digital gold,” the economist and gold bug added.
A few crypto fans made fun of Schiff on Twitter. One example is when the Ethereum proponent Anthony Sassano said: “ETH and BTC pumping on news that Peter Schiff got liquidated due to the massive gold dump.” Fxstreet analyst Anil Panchal explained on Monday that “XAU/USD looks to recapture $1750 on its road to recovery.” Similar to the Kitco report, the Fxstreet analyst also discussed the rise of Covid infections and China’s inflation. However, in contrast to Wyckoff’s report, Panchal views these events as having bolstered gold’s rebound.
“It should be noted that China’s upbeat inflation data and Australia’s easy covid infections, after refreshing multi-day high, also back the gold’s bounce,” Panchal said on Monday.
What do you think about gold prices and the recent gold and silver flash crash? Let us know what you think about this subject in the comments section below.
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The worth of an oz. of gold dropped dramatically this week, slipping beneath the $1,700 deal with to $1,688 per ounce on August 8. On Monday, gold regained a few of the losses leaping 2.36% again above the $1.7K area to $1,727 per ounce of tremendous gold.
Gold’s Unstable Actions This Weekend Blamed on a Variety of Components
Whereas bitcoin (BTC) costs are up greater than 4% on Monday and over 16% over the last week, the worth of gold has been dropping decrease in fiat worth. On August 6, 2021, the value of gold per ounce was buying and selling for simply over $1,800 per unit and slid to $1,688 per unit two days later shedding 6.22% in worth. The valuable metals (PM) information outlet Kitco mentioned the drop was as a result of an “in a single day flash crash in gold and silver costs.” The report blamed the crash on “summertime doldrums” and “skinny buying and selling situations.”
Furthermore, the Delta Variant pressure of Covid-19 has triggered alarm throughout markets, Kitco’s Jim Wyckoff particulars. Peter Brandt, a veteran futures and FX dealer since 1975, discussed gold’s motion on Sunday. “I’ve seen comparable worth motion to $GCF $SIF many instances through the years. This has all of the fingerprints of a financial institution/brokerage home conducting compelled liquidation upon an enormous leverage speculator,” Brandt tweeted. The dealer added:
The leverage within the futures marketplace for buying and selling Comex (CME) Gold is about 15 to 1. Thus, a leveraged place can get into critical hassle with the kind of decline skilled on Friday — leading to compelled liquidation on Sunday’s open.
Peter Schiff Knocks Bitcoin Whereas Gold Is Down, Analyst Sees Gold on Street to Restoration
After all, given the truth that bitcoin (BTC) was rising in distinction to gold costs, Peter Schiff didn’t sound too happy concerning the market motion. “Bitcoin rising as gold falls doesn’t imply [it has] changed gold as an inflation hedge,” Schiff said. “Gold is down as merchants mistakenly suppose the Fed will efficiently combat off inflation by tapering QE and elevating rates of interest. Bitcoin doesn’t commerce like gold as a result of it’s not digital gold,” the economist and gold bug added.
A number of crypto followers made enjoyable of Schiff on Twitter. One instance is when the Ethereum proponent Anthony Sassano mentioned: “ETH and BTC pumping on information that Peter Schiff received liquidated because of the huge gold dump.” Fxstreet analyst Anil Panchal defined on Monday that “XAU/USD seems to recapture $1750 on its highway to restoration.” Much like the Kitco report, the Fxstreet analyst additionally mentioned the rise of Covid infections and China’s inflation. Nevertheless, in distinction to Wyckoff’s report, Panchal views these occasions as having bolstered gold’s rebound.
“It ought to be famous that China’s upbeat inflation information and Australia’s straightforward covid infections, after refreshing multi-day excessive, additionally again the gold’s bounce,” Panchal mentioned on Monday.
What do you consider gold costs and the current gold and silver flash crash? Tell us what you consider this topic within the feedback part under.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It’s not a direct supply or solicitation of a suggestion to purchase or promote, or a suggestion or endorsement of any merchandise, providers, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, straight or not directly, for any injury or loss triggered or alleged to be attributable to or in reference to using or reliance on any content material, items or providers talked about on this article.
