This website uses cookies to ensure you get the best experience on our website
Join us on Telegram for FREE daily market updates!

Blog

Date:
08th Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Gold Prices Slows Down To a One-Year Low, Losses over $200 in Two Months

Losses of late February 2021 spilled over to what is proving to be a brutal month for the yellow metal. Candlestick arrangements in higher timeframes point to determined bears who have pushed gold prices to a new one-year low. Prices, last week, closed below the psychological support—now resistance levels of $1.7k. Analysts worry that at the current pace of price correction, the yellow metal could flash crash to $1.6k, extending the more than $200 loss of the first two months of 2021 alone.


Details: 

Gold is free-falling, and bears are still not yet close to the bottom of the pit. Analysts are bearish, expecting even more losses in the future. Sparking this sell-off is a confident FED who are not concerned about rising bond yields—and therefore the shift of capital from the low-interest bearing precious metal to government treasury yields backed by the FED. Although rising bond rates mean expensive loans, when governments continue to rack up more loans post-COVID, inflation may offer gold support in the long-term. Presently, investors are confident, shifting capital to relatively high-risk ventures for higher returns, divesting away from the value-preserving and safe-haven store-of-value.


Impact on Gold prices: 

Bearish. Fundamentals may be bearish for gold, but technical candlesticks may help the yellow metal soak sell pressure as prices rebound above $1.7k. However, that may not arrest bears who, going by the pace of the last few weeks' dump, are aiming for $1.6k.


For more market updates visit our Blog


Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020