Flash crash rattles gold markets as Bitcoin holds strong
Wink crash rattles gilt markets as Bitcoin holds strong
Gold prices have dropped below $1,700 per ounce this morning in what analysts described as stop-loss driven selling.
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Gold prices accept tanked during the Monday morning Asian trading session, compounding losses accumulated over the past calendar week.
On Mon, the price of gold quickly fell to its lowest level since March as a flash crash collection prices below $1,700 per ounce.
According to TradingView, the price of the precious yellow metallic plunged to $1,690/oz during Asian trading hours on Monday. The price of golden has since posted a minor recovery, concluding changing hands for $ane,742/oz at the time of writing.
Gold is currently down past 4% over the past 7 weeks and viii.seven% since trading above $1,900/oz at the end of May. The precious metal has retreated 8% in 2022 then far, and it is currently down xiv.six% from its Baronial 2022 all-time loftier of but below $two,040.
How the hell was I comatose for this flash crash in Gold picture show.twitter.com/2Foy7WiOwB
— Chairman Everything-Will-Pump ☝™️ (@chairmanlmao33) August 9, 2022
Forex trader and chart guru Peter Brandt attributed the crash to wholesale liquidations, stating, "This has all the finger prints of a bank/brokerage business firm conducting forced liquidation upon a huge leverage speculator."
He noted that the leverage ratio on the Chicago Mercantile Commutation's aureate markets is roughly 15-to-1, suggesting heavily leveraged traders are driving price action for golden.
Analysts at London trading firm Metropolis Index similarly blamed Monday morning'southward crash to "cease-loss related selling in very sparse marketplace conditions."
However, U.s. unemployment figures have also been a goad for the decline in commodity prices final week. The unemployment rate dropped more than than expected to 5.four% from 5.9%, a new low of the pandemic era, according to a Bureau of Labor Statistics report published Friday. Along with the labor market and economic system, the broader U.S. economy is continuing to heal. Urban center Alphabetize concluded:
"The better jobs data sent the US dollar and Usa bail yields higher, never a good formula for commodities."
With i Bitcoin (BTC) currently worth 25 ounces of gold, Bitcoin is down 28.five% from its best high against gold — with a unmarried BTC having been worth 35 ounces of gilt during Bitcoin'due south all-time toll high of about $65,000 in mid-Apr. Nevertheless, 1 Bitcoin was worth 15.5 ounces of aureate at the commencement of 2022.

At the fourth dimension of writing, BTC had slumped ii% over the past 24 hours to trade at $43,667, according to CoinGecko.
Source: https://cointelegraph.com/news/flash-crash-rattles-gold-markets-as-bitcoin-holds-strong
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