While bitcoin recovers, gold plummets by 6% By Crypto

© Reuters. While bitcoin recovers, gold plummets 6%

The price of gold dropped from just over $1,800 to about $1,690 an ounce yesterday afternoon, its lowest price since March, after what broker City Index called a “stop-loss-related sale on trading conditions. market very narrow”.

As it plummeted, the price of gold rose 3% in the past 24 hours to levels of nearly $46,000, prompting some “digital gold” investors to emphasize the sudden drop in what they regard as its physical predecessor.

“Gold marketing needs to start pushing the ‘analog’ narrative,” tweeted George Mandrik.

“ETH and BTC booming the news that Peter Schiff has been liquidated due to the huge gold deposit. “

Through leveraged positions, traders borrow money from a broker to play with more money than they have. Leveraged positions can generate higher profits but also higher net losses. They are more sensitive to price fluctuations and traders can be liquidated if the market moves against them.

The futures market on the Chicago Mercantile Exchange allows you to trade gold at a 15-1 rate, and such positions “come into serious trouble with the kind of decline experienced on Friday,” Brandt said.

At the time of this writing, the price of the precious metal has recovered to about $1,740. The next resistance level is $1,750, said Tony Sycamore, an analyst at trading company City Index. If gold doesn’t recover that price soon, there is a risk of “re-testing the lows of this morning’s ‘flash crash’ in the upcoming sessions,” he wrote.

Sycamore said new US unemployment data helped catalyze yesterday’s sudden crash as it “raised US dollar and bond yields, which was never a good thing for commodities.” US unemployment levels fell 5.9% in July, 0.5% more than initially estimated.

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