By Harry B - Crypto Consultant - 09-08-2021
Hitting the media this morning, the price of gold has fallen due to stop-loss trading. According to analysts, the price dipped below $1,700 per ounce for gold from a multitude of investors using the stop-loss method of trading and investing.
This past week, the value for the popular commodity had plunged to a new low since March. Reportedly, the price drop occurred during the Asian trading hours sending the precious metal down to $1690 per oz. Since the fall on Monday, the commodity's price is recovering, albeit very slowly, with the current price sitting at $1,742/oz.
However, gold has been down 4% in the last few weeks despite the slight incline in price after Monday's drop. Furthermore, the asset is down by 8.7% compared to its price in May when it traded for $1900 per oz. So far in 2021, the precious metal had fallen by 14.6% from its all-time high of just under $2,040 in August 2020.
Well-known analyst Peter Brandt reportedly stated that the recent value drop is the fault of wholesale liquidations. Brandt talked about how the ratio for leverage within the commodity market of the Chicago Mercantile Exchange is 15-to-1. The analyst heavily implied that the numbers mean that what's driving the price in gold down is having extremely leveraged traders.
It's also reported that the prices were falling due to recent data regarding unemployment in the US. As stated within an official report from the Bureau of Labor Statistics, the jobless rate fell to a whole new low than predicted to 5.4% from 5.9%.
In other news, the price to buy Bitcoin (BTC) has fallen by 28.5% from its recent all time high of $65,000. At the time of its price peak for Bitcoin buying, just one BTC was worth a total of 35 ounces in gold. The current comparison is that one Bitcoin would equal 25 ounces of gold as of writing, which remains drastically different from 15.5 ounces of gold to one Bitcoin at the start of 2021.