Gold slips back more than $100 an ounce from new historic highs
Gold closed at new historic highs as early as Friday, the beginning of December. The level of $2071 per ounce was the highest closing ever. However, this is not the end of gold's upward price history. During the Asian session on December 4, the price of gold jumped above $2100, reaching levels near $2150 per ounce. This was a level more than 5% higher than the November close!
On the other hand, there have been many questions as to why gold prices rose so strongly. There may be several reasons. One is the growing connection to Bitcoin, which gained strongly over the weekend. Many factors are now having a very similar effect on both Bitcoin and gold. Also worth mentioning is the strong retreat in US yields in recent weeks. Yields on 10-year bonds have retreated from around 5% to "as low as" 4.2%. The recent weak dollar has also fueled gains in both Bitcoin and gold.
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Create account Try a demo Download mobile app Download mobile appToday, however, the dollar's strength prevailed, and in addition, we are seeing the realization of gains on gold after such a spectacular 2-day rally. The price has already fallen by more than $100 per ounce! On a daily basis, gold is losing about 1.2%, although it previously gained almost 4%. It is worth mentioning that the EURUSD is retreating by about 0.5% today, and on the chart we can see the formation of quite a divergence between the price of gold and the EURUSD.
Gold is retreating sharply, but it is worth noting the increase in net long positions and seasonality, which shows a positive December. Source: xStation5
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