{"id":10721,"date":"2021-08-09T21:54:50","date_gmt":"2021-08-09T21:54:50","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/gold-rebounds-after-sundays-flash-crash-price-slide-blamed-on-thin-trading-conditions-leverage-covid\/"},"modified":"2021-08-09T21:54:50","modified_gmt":"2021-08-09T21:54:50","slug":"gold-rebounds-after-sundays-flash-crash-price-slide-blamed-on-thin-trading-conditions-leverage-covid","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/gold-rebounds-after-sundays-flash-crash-price-slide-blamed-on-thin-trading-conditions-leverage-covid\/","title":{"rendered":"Gold Rebounds After Sunday\u2019s Flash Crash \u2014 Price Slide Blamed on Thin Trading Conditions, Leverage, Covid"},"content":{"rendered":"

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.<\/strong><\/p>\n

Gold\u2019s Volatile Movements This Weekend Blamed on a Number of Elements<\/h2>\n

While bitcoin (BTC<\/a>) 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<\/a> 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 \u201covernight flash crash in gold and silver prices.\u201d The report<\/a> blamed the crash on \u201csummertime doldrums\u201d and \u201cthin trading conditions.\u201d<\/p>\n<\/p>\n

Moreover, the Delta Variant strain of Covid-19 has caused alarm across markets, Kitco\u2019s Jim Wyckoff details. Peter Brandt,<\/a> a veteran futures and FX trader since 1975, discussed<\/a> gold\u2019s action on Sunday. \u201cI\u2019ve 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,\u201d Brandt tweeted. The trader added<\/a>:<\/p>\n

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 \u2014 resulting in forced liquidation on Sunday\u2019s open.<\/p>\n

<\/p>\n

Peter Schiff Knocks Bitcoin While Gold Is Down, Analyst Sees Gold on Road to Recovery<\/h2>\n

Of course, given the fact that bitcoin (BTC<\/a>) was rising in contrast to gold prices, Peter Schiff didn\u2019t sound too pleased about the market action. \u201cBitcoin rising as gold falls doesn\u2019t mean [it has] replaced gold as an inflation hedge,\u201d Schiff said<\/a>. \u201cGold is down as traders mistakenly think the Fed will successfully fight off inflation by tapering QE and raising interest rates. Bitcoin doesn\u2019t trade like gold because it\u2019s not digital gold,\u201d the economist and gold bug added.<\/p>\n

A few crypto fans made fun of Schiff on Twitter. One example is when the Ethereum proponent Anthony Sassano said: \u201cETH<\/a> and BTC<\/a> pumping on news that Peter Schiff got liquidated due to the massive gold dump.\u201d Fxstreet analyst Anil Panchal explained on Monday that \u201cXAU\/USD looks to recapture $1750 on its road to recovery.\u201d Similar to the Kitco report, the Fxstreet analyst also discussed the rise of Covid infections and China\u2019s inflation. However, in contrast to Wyckoff\u2019s report, Panchal views these events as having bolstered gold\u2019s rebound.<\/p>\n

\u201cIt should be noted that China\u2019s upbeat inflation data and Australia\u2019s easy covid infections, after refreshing multi-day high, also back the gold\u2019s bounce,\u201d Panchal said on Monday.<\/p>\n

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.<\/strong><\/em><\/p>\n

Bitcoin News
\nEconomics, analyst, Anil Panchal, Anthony Sassano, Bitcoin, bitcoin prices, BTC, BTC Prices, Covid, Covid cases, delta-variant, ETH, ETH prices, Flash Crash, FXstreet analyst, gold, Gold Flash Crash, Gold Prices, Jim Wyckoff, Kitco, Peter Brandt, Peter Schiff, QE, stimulus<\/p>\n","protected":false},"excerpt":{"rendered":"

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\u2019s Volatile Movements This Weekend Blamed on a Number of…<\/p>\n","protected":false},"author":0,"featured_media":10722,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10721"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10721"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10722"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}