Gold prices dropped below $1,700 per ounce in what analysts described as stop-loss driven selling.
Gold prices have tanked during the Monday morning Asian trading session, compounding losses accumulated over the past week.The price of gold quickly fell to its lowest level since March as a flash crash drove prices below $1,700/oz.
Gold is currently down by 4% over the past 7 week and 8.7% since trading above $1,900/oz at the end of May. The precious metal has retreated 8% for 2021 so far, and it is currently down 14.6% from its August 2020 all-time high of just below $2,040.
Analysts at London trading firm City Index blamed the crash to “stop-loss related selling in very thin market conditions.” However, U.S. unemployment figures have also been the catalyst for a decline in commodity prices last week. The unemployment rate dropped more than expected to 5.4% from 5.9%, a new low of the pandemic era according to a Bureau of Labor Statistics report published Friday.
With one Bitcoin currently worth 25 ounces of gold, Bitcoin is down 28.5% from its all-time high against gold — with a single BTC having been worth 35 ounces of gold during Bitcoin’s all-time price high of nearly $65,000 in mid-April.
