Gold Price Plummets, and Bitcoin Strengthens Its Position
On the morning of August 9, the price of gold dropped to below $1,700 an ounce.
Gold dropped to $1,690 an ounce during Asian trading, according to TradingView. But after that, the price of gold slightly increased, and at the time of writing, the precious metal was traded on the exchange at a price of $1,742 per ounce.
Over the past seven weeks, the price of gold has dropped by 4%. And since the end of May, when traders were selling gold for above $1,900 per ounce, the cost of the precious metal has decreased by 8.7%. Since the last all-time high, recorded in August 2020 at $2040, the price of gold has fallen by 14.6%.
Many experts believe that highly leveraged traders are responsible for the fall of the price of gold.
But another reason could be the US unemployment rate. According to the latest data from the Bureau of Labour Statistics, the unemployment rate fell from 5.9% to 5.4%.
According to City Index, the US economy continues to recover with the expansion of the labour market.
At the same time, at the time of writing, you could buy Bitcoin for 25 ounces of gold. In mid-April, an all-time high was recorded when the price of Bitcoin was 35 ounces of gold, or $65,000. Since then, the price has fallen by 28.5%.