The price of gold has seen a dramatic fall today in light of a new report stating that the US jobs market continues to remain strong.
Precious metals and cryptocurrencies are often used as a hedge against the traditional financial system. This means that when the economy is perceived to be strong, their value often drops.
Gold is down from $1,480 per ounce to $1,462 per ounce today, with silver also experiencing a steep 2.4% decline.
Meanwhile, Bitcoin has remained relatively stable around the $7,400 level, despite being 28% down since October.
Positive sentiment in the political and economic world seems to have returned to the market in recent weeks. This was demonstrated by the Great British pound’s rally earlier this week, with the currency hitting a two-month high on hopes that a Conservative majority will be elected at next week’s election.
Over the course of the year, the US stock market has rallied to all-time highs, whereas gold is 6.16% down since its $1,550 high on September 2.
Bitcoin has also endured a volatile year. The world’s largest cryptocurrency rallied to $14,000 in June on the back of Facebook’s Libra announcement before crashing down around 50% following the disappointing launch of Bakkt’s Bitcoin futures product.
From a bullish standpoint, Bitcoin and gold both need political instability in order to trigger worthwhile reversals, with analysis suggesting that Bitcoin could in fact dive back down to last December’s low of $3,150.
For more news, guides, and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.