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As Bitcoin grows, gold falls

  • While Bitcoin has started to gradually recover ground, gold has presented a decline in value of almost 6%.
  • Precious metals news site Kitco blamed the decline in gold value on a “sudden collapse in gold and silver prices.”

For all those who have or invest in the financial markets, surely they bear in mind that there are many things that cannot be predicted, such as the sudden changes that can occur, causing them to win or lose money in unexpected ways, although that is just the point. investment risk.

Likewise, a currency or currency may present good value conditions, while others not so much, and that is precisely the case of the crypto asset Bitcoin, which has shown significant growth in recent weeks.

Bitcoin on the rise, gold on the decline

However, while the asset created by Satoshi Nakamoto is on the right track, the precious metal gold, has not been so lucky, as it has presented a decline in value.

Last Friday, gold value per ounce it was being priced slightly above $ 1,800 per unit, to later suffer a fall that placed it at $ 1,688 per unit, only 48 hours later, with which the asset had a loss of 6.22 percent of its value.

Source: Goldprice.org

Seen within a period of 30 days, the value of gold has had a fall of 4.14% but it has been recovering little by little.

Source: Goldprice.org

About, the precious metals information site Kitco, awarded the decline in the value of gold to a “sudden collapse in gold and silver prices. Similarly, a report prepared by the information portal pointed out that said fall was mainly due to the “summer depression” and the “bad business conditions“.

Another factor external to trade related to these losses has to do again with the pandemic, since once again the coronavirus is affecting those marked because of the Delta Variant strain of Covid-19, which is the cause that they have been put on again. Financial markets on alert, according to Jim Wyckoff of Kitco.

Regarding the movements and declines of gold in the market, the futures trader Peter Brandt, talked about the drop in gold presented on August 8.

I have seen a price action similar to $ GCF $ SIF on many occasions over the years. Therefore I can say that this has all the symptoms that a banking institution that is carrying out a forced liquidation of a huge leverage speculatoror, ”Brandt wrote on his personal Twitter account.

In addition, added :

Leverage in the futures market to trade Comex (CME) Gold is around 15 to 1. Consequently, a leveraged position may have serious problems with the type of decline suffered last August 6, resulting in a Forced liquidation at the opening of August 8or”.

Gold could be on the way to rally

Although the rise of the crypto asset known as “digital gold” was more than evident in relation to the falling prices of gold, Peter Schiff was not entirely satisfied with the movements of the market, which is why he pointed out that:

Although Bitcoin has shown interesting growth while gold has lost value, this does not mean that the virtual asset has replaced gold as an inflation hedge”, He said Schiff.

Finally the economist added:

The loss of value of gold is explained by the fact that traders mistakenly consider that the Fed will carry out a successful fight against inflation, thereby reducing QE and increasing interest rates. It is also important to remember that Bitcoin is not traded like gold, simply because it is not gold.”.

It might interest you:

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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