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Fear of War, Monkeypox Causes Stock and Crypto Markets to Churn While Precious Metal Spike Higher

04/08/2022 by Idelto Editor

Fear of War, Monkeypox Causes Equity and Crypto Markets to Churn While Precious Metal Spike Higher

Stock and cryptocurrency markets on Thursday saw volatility, after experiencing fluctuations during the tensions between China and Taiwan on Tuesday and Wednesday. Major indexes like the S&P 500, Dow Jones, and NYSE have shed a few percentages today, while the global cryptocurrency market capitalization lost 2.5% in 24 hours, dropping to just above the $1.1 trillion range. Precious metals, on the other hand, traded higher as U.S. president Joe Biden’s administration declared the Monkeypox virus a public health emergency in the United States.

China and Taiwan Tensions and Monkeypox Reports Cause Stock and Crypto Prices to Fluctuate, Precious Metal Markets Rise Catching ‘Safe-Haven Demand’

Stock and crypto traders faced some headwinds on August 4, the day after the American representative from California, Nancy Pelosi, visited Taiwan to discuss democracy with the Taiwanese president Tsai Ing-wen. Global markets saw some fluctuations before the U.S. diplomat visited Taipei and during the visit on Wednesday as well.

Equities and precious metals markets slid the day before on August 3, while the crypto economy managed to consolidate for another day. U.S. equities markets took a dip again on Thursday as the Dow Jones dropped 85 points lower during the afternoon (EST) trading sessions. Cryptocurrencies followed the drop in stock markets during the course of the day.

While Nasdaq was up, the S&P 500, NYSE, and many other stocks saw losses during the course of the afternoon trading sessions. The crypto economy saw losses as well, as the entire lot of digital assets lost 2.5% in the last 24 hours against the U.S. dollar.

Fear of War, Monkeypox Causes Equity and Crypto Markets to Churn While Precious Metal Spike Higher

The leading crypto asset bitcoin (BTC) slipped 5% on Thursday afternoon from $23,548 to $22,395 in value. Ethereum (ETH) too lost 5% today after tapping a 24-hour high at $1,666 per unit down to a low of $1,545 per coin. Out of the top ten crypto market cap contenders, solana (SOL) lost the most losing 5.6% during the day and polkadot (DOT) shed 5.5%.

In Europe, the Ukraine-Russia war rages on and tensions between China and Taiwan have escalated this week. While Asia deals with the tensions, Europe is dealing with an energy crisis and a recession. The U.S. is also dealing with what many believe is a recession even though American bureaucrats and their experts have stated otherwise.

On Thursday, the U.S. Labor Department published the weekly jobless claims data, which notes claims increased by 6,000 to 260,000. As the weekend approaches, stock traders have been interested in America’s July jobs report, which is due to be published on Friday. A couple of hours before the closing bell on Thursday, a few of the top Wall Street indexes like the Dow, and the S&P 500 rebounded slightly. By the end of Wall Street’s trading day on Thursday, three out of the four major indexes were down.

Meanwhile, gold and silver markets saw some relief on Thursday as both assets climbed higher. Gold’s price per ounce jumped 1.64%, while silver’s value per ounce against the U.S. dollar increased 1.04%. On August 4, Kitco’s Jim Wyckoff attributed the precious metals spike to tensions in Asia when he said that gold and silver prices were higher in the U.S. due to “on safe-haven demand as China-Taiwan-U.S. tensions have escalated this week.”

Furthermore, on Thursday, reports detail that the U.S. has officially declared the virus Monkeypox a public health emergency. The Washington Post (WP) reporter Dan Diamond explained that “two officials who spoke on the condition of anonymity” said that the Biden administration would declare monkeypox an outbreak and a public health emergency. Diamond wrote that the message would stem from the White House Health and Human Services secretary Xavier Becerra.

Following the report, Becerra ended up declaring monkeypox a public health emergency in the U.S., during an afternoon news briefing. “We’re prepared to take our response to the next level in addressing this virus, and we urge every American to take monkeypox seriously,” the health secretary stressed to the press.

What do you think about the stock and crypto market action on Thursday while gold and silver prices saw some gains? Let us know your thoughts about this subject in the comments section below.

Filed Under: Biden Administration, Bitcoin, BTC, China, crypto economy, Crypto markets, DOW, English, equities, equity markets, ETH, Ethereum, gold, health secretary, Jim Wyckoff, Kitco, Market Updates, Monkeypox, nasdaq, News Bitcoin, NYSE, public health emergency, S&P 500, silver, Stock Markets, Taiwan, Ukraine-Russia war, Wall Street indexes, War, White house, Xavier Becerra

The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink

03/08/2022 by Idelto Editor

Several reports detail that U.S. Federal Reserve officials are resolute on tightening monetary policy and increasing the federal funds rate until inflation in America is alleviated. Chicago Fed president Charles Evans explained on Tuesday that the central bank would likely keep up the larger than usual rate hikes until inflation is remedied.

The Fed Is ‘Nowhere Near’ Done When It Comes to Tighter Policy, Central Bank Has Not Seen a ‘Turn in Inflation’

The Federal Reserve is in a predicament as inflation in America is the highest its been since the 1980s. On Tuesday, a report quoting three members of the U.S. central bank indicates that the Fed’s policymakers are still convinced more rate hikes are needed to tame the country’s rising inflation.

San Francisco Fed president Mary Daly explained during a Linkedin interview “we are still resolute and completely united” in getting inflation down. Daly stressed the Fed was “nowhere near” done as far as implementing monetary policy measures and in terms of fighting inflation, she said the central bank still has “a long way to go.”

“My modal outlook, or the outlook I think is most likely, is really that we raise interest rates and then we hold them there for a while at whatever level we think is appropriate,” Daly remarked. Cleveland Fed president Loretta Mester’s opinion was similar, as she told the Washington Post (WP): “we have more work to do because we have not seen that turn in inflation.”

Chicago Fed president Charles Evans shared his opinion this Tuesday as well. Evans explained to reporters that the Fed would likely continue large interest rate increases until inflation is down. While he spoke about larger than usual rate hikes in the 75 bps range, Evans also clarified that a 50 basis point rate hike could still happen.

“If you really thought things weren’t improving… 50 bps is a reasonable assessment, but 75 bps could also be okay. I doubt that more would be called for,” Evans said. Amid the hawkish statements from the Fed members on Tuesday afternoon (EST), cryptocurrencies, stocks, and gold markets dropped in value. The U.S. dollar, on the other hand, has strengthened against the Japanese yen and other major fiat currencies after a brief downturn.

Volatility Strikes Equities, Gold, Cryptocurrencies

By the closing bell on Tuesday, all of the major stock indexes were down, including the Dow Jones Industrial Average, Nasdaq, NYSE, and the S&P 500. Cryptocurrency markets also shed some gains and the market capitalization is hovering just above $1.13 trillion. Bitcoin (BTC) slipped under the $23K per unit zone and ethereum (ETH) dropped under $1,600 per coin on Tuesday.

During the course of the day on Tuesday, both leading crypto assets managed to climb back above those regions. The following day on August 3, the entire crypto economy is up just over 2%. Equities and the crypto economy have started showing a bit more volatility as tensions rise between China and Taiwan. Gold is also down this month as one ounce of fine gold exchanged hands for $1,810 per unit on July 1, and today gold is trading for $1,765 per unit.

The Fed Is ‘Resolute’ on Hiking Interest Rates, Tightening Monetary Policy to Tame Inflation — Gold and Stocks Sink

Analysts say gold’s recent slide is due to a strong U.S. dollar as the DXY index charts show the greenback remains robust after it dropped last week. “Gold pared gains after Wall Street became optimistic that tensions between the two world’s largest economies would get out-of-hand,” OANDA’s senior market analyst Edward Moya told Kitco News. “A strong dollar is also weighing on gold, as the greenback’s pullback over the past couple weeks appears to be over.”

What do you think about the statements from various Fed members and the market reaction following the hawkish commentary and tensions between China and Taiwan? Let us know what you think about this subject in the comments section below.

Filed Under: Bitcoin, BTC, Charles Evans, China and Taiwan, crypto assets, crypto economy, cryptocurrency markets, DOW, Economics, Edward Moya, English, equities, ETH, Ethereum, Federal Funds Rate, gold, Gold Markets, Greenback, inflation, interest rates, Kitco, Loretta Mester, Mary Daly, Monetary Policy, nasdaq, News Bitcoin, NYSE, OANDA, rate hikes, S&P 500, senior market analyst, stock indexes, Tame Inflation, tighten, tightening policy, US Dollar

Gold Rebounds After Sunday’s Flash Crash — Price Slide Blamed on Thin Trading Conditions, Leverage, Covid

09/08/2021 by Idelto Editor

Gold Rebounds After Sunday's Flash Crash — Price Slide Blamed on Thin Trading Conditions, Leverage, Covid

The price of an ounce of gold dropped dramatically this week, slipping under the $1,700 handle to $1,688 per ounce on August 8. On Monday, gold regained some of the losses jumping 2.36% back above the $1.7K region to $1,727 per ounce of fine gold.

Gold’s Volatile Movements This Weekend Blamed on a Number of Elements

While bitcoin (BTC) prices are up more than 4% on Monday and over 16% during the last week, the value of gold has been dropping lower in fiat value. On August 6, 2021, the price of gold per ounce was trading for just over $1,800 per unit and slid to $1,688 per unit two days later losing 6.22% in value. The precious metals (PM) news outlet Kitco said the drop was due to an “overnight flash crash in gold and silver prices.” The report blamed the crash on “summertime doldrums” and “thin trading conditions.”

Gold Rebounds After Sunday's Flash Crash — Price Slide Blamed on Thin Trading Conditions, Leverage, Covid

Moreover, the Delta Variant strain of Covid-19 has caused alarm across markets, Kitco’s Jim Wyckoff details. Peter Brandt, a veteran futures and FX trader since 1975, discussed gold’s action on Sunday. “I’ve seen similar price action to $GCF $SIF many times over the years. This has all the fingerprints of a bank/brokerage house conducting forced liquidation upon a huge leverage speculator,” Brandt tweeted. The trader added:

The leverage in the futures market for trading Comex (CME) Gold is about 15 to 1. Thus, a leveraged position can get into serious trouble with the type of decline experienced on Friday — resulting in forced liquidation on Sunday’s open.

Peter Schiff Knocks Bitcoin While Gold Is Down, Analyst Sees Gold on Road to Recovery

Of course, given the fact that bitcoin (BTC) was rising in contrast to gold prices, Peter Schiff didn’t sound too pleased about the market action. “Bitcoin rising as gold falls doesn’t mean [it has] replaced gold as an inflation hedge,” Schiff said. “Gold is down as traders mistakenly think the Fed will successfully fight off inflation by tapering QE and raising interest rates. Bitcoin doesn’t trade like gold because it’s not digital gold,” the economist and gold bug added.

A few crypto fans made fun of Schiff on Twitter. One example is when the Ethereum proponent Anthony Sassano said: “ETH and BTC pumping on news that Peter Schiff got liquidated due to the massive gold dump.” Fxstreet analyst Anil Panchal explained on Monday that “XAU/USD looks to recapture $1750 on its road to recovery.” Similar to the Kitco report, the Fxstreet analyst also discussed the rise of Covid infections and China’s inflation. However, in contrast to Wyckoff’s report, Panchal views these events as having bolstered gold’s rebound.

“It should be noted that China’s upbeat inflation data and Australia’s easy covid infections, after refreshing multi-day high, also back the gold’s bounce,” Panchal said on Monday.

What do you think about gold prices and the recent gold and silver flash crash? Let us know what you think about this subject in the comments section below.

Filed Under: analyst, Anil Panchal, Anthony Sassano, Bitcoin, bitcoin prices, BTC, BTC Prices, Covid, Covid cases, delta-variant, Economics, English, ETH, ETH prices, Flash Crash, Fxstreet Analyst, gold, Gold Flash Crash, Gold Prices, Jim Wyckoff, Kitco, News Bitcoin, Peter Brandt, Peter Schiff, QE, stimulus

Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum

05/08/2021 by Idelto Editor

Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum

On August 4, the precious metals firm Kitco Gold announced the launch of a gold-backed stablecoin which will leverage an audit process via Cohen & Company with monthly attestation reports. Kitco has partnered with Tradewind Markets, First Digital Trust, and Stably, an asset tokenization provider. The gold-backed ERC20 tokens called “kitco gold (KGLD)” “represent one true, troy ounce of fine gold,” according to Kitco.

Kitco Launches KGLD Token Backed by a Troy Ounce of .999 Gold

In the seventies, Bart Kitner started trading gold with funds he got from a loan and managed to expand his business into a massive precious metals company from a mere $700 investment. The global precious metals (PMs) market, Kitco, is considered an authority when it comes to PMs like gold, platinum, palladium, and silver. The Montreal-based PM company also runs a popular PM-focused website that offers financial news and PM market data.

Now the company is getting into cryptocurrency solutions as Kitco revealed it has partnered with the custodian First Digital Trust, the blockchain provider Tradewind Markets, and tokenization firm Stably. Kitco will launch a token called kitco gold (KGLD) which will translate into a single troy ounce of .9999 fine gold. The Kitco ERC20 tokens will be backed by gold reserves held in Directreserve vaults. The well-known CPA verification firm Cohen & Company will bolster the coin’s attestation process.

Precious Metals Firm Kitco Launches Gold-Backed Tokens Built on Ethereum

Because Kitco’s token is an ERC20, the firm believes the coin can be easily added to exchanges, wallet platforms, and defi ecosystems. The token’s value is recorded in real-time using the same market value of the spot gold price. John Dourekas, the chief business development officer of Kitco Digital Metals Group, explained on Wednesday that Kitco has been anticipating the release of KGLD.

“We’ve been looking forward to unveiling Kitco Gold, representing a digital receipt of physical gold ownership, which is digitally spendable,” Dourekas said in a statement. “Buyers will be able to access a secure and reliable gold token, the most robust asset class to date. Institutional investors will have a competitive alternative to traditional gold products such as gold ETFs, with the additional benefits of real-time trading and settlement enabled by blockchain technology.”

Gold Tokens Jump 30-Fold Since 2020, Kitco’s Gold Coin Will Face Competition

Kitco’s announcement follows the recent report published by Arcane Research which details that gold-pegged tokens have jumped in value 30x since the start of 2020. The PM dealer’s move also follows the largest increase in inflationary pressure since the 2008 financial crisis. Kitco has further indicated there’s been a trend of traditional financial institutions looking for stable hedges like PMs and crypto-assets.

“Trust and verification are hallmarks of a well-functioning market,” Tradewind Markets CEO Michael Albanese said during Kitco’s gold-backed token launch announcement. “We are pleased to be applying best practices from other asset markets to make gold as an investment asset more secure, accessible, and cost-efficient.”

Kitco’s KGLD creation will face gold token competitors as there are tokenized versions of both troy ounce measurements of gold and grams as well. KGLD will face projects like Tether Gold (XAUT), Digixglobal (DGX), PAX Gold (PAXG), Perth Mint Gold Token (PMGT), Gold Coin (GLC), and many more. In 2020, on a few occasions reports had shown gold-backed tokens were fetching premiums.

What do you think about Kitco’s gold-backed ERC20 token launch announcement? Let us know what you think about this subject in the comments section below.

Filed Under: crypto assets, Digixglobal (DGX), English, ERC20, Ethereum, gold, Gold Investing, Gold-Backed Tokens, KGLD, KGLD tokens, Kitco, Kitco Digital Metals Group, Kitco Gold, kitco gold (KGLD), News, News Bitcoin, PAX Gold (PAXG), PM, PMS, Precious Metals, Tether Gold (XAUT), Traditional Finance

BNY Mellon Report Compares Bitcoin and Gold, Study Says ‘Gold Is the Only Globally Accepted Currency’

01/04/2021 by Idelto Editor

BNY Mellon Report Compares Bitcoin and Gold, Study Says ‘Gold Is the Only Globally Accepted Currency'

The popular safe-haven asset gold recently posted the lowest settlement in three weeks, as a firm dollar and bond market yields have weakened support for the precious metal. The financial goliath BNY Mellon also published a report about the differences between gold and bitcoin and the study said that the crypto asset “fits the description of a nascent currency.”

A Firm Dollar and Treasury Yields Takes Some Steam Out of Gold’s Market Performance

The U.S. dollar has gained some strength in the last two weeks, and crypto-assets like bitcoin (BTC) have increased in value as well. However, the precious metal (PM) gold has seen better days, as gold prices have retreated during the last few weeks. The price of gold dropped under the $1,700 per ounce range last week but today, the PM has managed to climb back above the psychological price zone. At the time of publication, an ounce of .999 fine gold is trading for $1,716.30 after jumping 1.7% in the last 24 hours.

BNY Mellon Report Compares Bitcoin and Gold, Study Says ‘Gold Is the Only Globally Accepted Currency'
Today’s gold and silver prices.

Gold bugs and economists have been discussing Joe Biden’s proposed $3 trillion stimulus package, and it could kickstart gold, silver, and other types of assets that are considered a hedge against inflation. Kitco Metals’ Jim Wyckoff said the dollar’s recent rise and the crazy Treasury yields “are limiting buying interest.”

“The gold and silver market bulls need a fundamental spark,” Kitco Metals senior analyst stressed. Wyckoff also noted that the top two PMs, gold and silver, saw “technically-related selling pressure from the shorter-term futures traders amid still-bearish near-term charts.” Meanwhile as gold has been in a slump, cryptocurrency markets have seen some fresh fervor after prices dropped from highs settled on March 13, 2021.

BNY Mellon Report Compares Bitcoin and Gold

Moreover, the financial institution BNY Mellon has also published a comprehensive study on the attributes of the crypto asset bitcoin (BTC) and the PM gold. BNY Mellon’s report zeroes in on the controversial stock-to-flow ratio (S2F) and the creator Plan B’s alternative model called the stock-to-flow cross-asset model (S2FX).

“The implication from this model is that as bitcoin gains more mainstream momentum and is viewed more like gold,” the BNY Mellon report says. “The scarcity value (as measured by S2F) and the subsequent halving will ultimately drive prices to the gold dot cluster and implied total market value.”

The researchers at BNY Mellon are not buying the digital gold theory and highlighted that BTC “fits the description of a nascent currency.” Although the financial institution’s report does say bitcoin can gold have “similarities” and that BTC could look up to the popular PM.

“Bitcoin is also frequently compared to gold,” BNY Mellon’s study notes. “Indeed, there are many similarities and gold is a worthy role model for bitcoin. After all, gold has been accepted as a store of value and medium of exchange for centuries (nowadays, mostly as a store of value, almost none is used as a medium of exchange). We believe gold is also the only globally accepted ‘currency’ that has circumvented the issue of sanctioning entities.”

However, in mid-February 2021, BNY Mellon set up a digital currency unit that plans to “hold, transfer, and issue” bitcoin.

What do you think about gold’s recent performance and BNY Mellon’s bitcoin and gold comparisons? Let us know what you think about this subject in the comments section below.

Filed Under: Bitcoin, BNY Mellon, BNY Mellon gold, Dollar, Economics, English, gold, Gold Prices, Jim Wyckoff, Kitco, metals, News Bitcoin, Ounce of Gold, PM, PMS, Precious Metals, report, S2F, silver, Treasury Yields, USD, Yields

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