At the G20 Summit this weekend, Donald Trump and his Chinese Counterpart, Xinping Xao, agreed to ease down on the on-going trade war between the countries. Both the parties accepted not to increase the tariff on the import of other’s goods.
This came as positive news for the stock markets; however, Gold prices dropped by 1.23% as the confidence in the economy seems to be creeping back-up.
Gold (AUX)/USD 1-Day Chart on Forex (TradingView)
Nevertheless, Gold Bull, Peter Schiff still feels it is no threat to the price of Gold, he tweeted,
“…All that happened is that Trump backed down from his threat to increase tariffs on Americans buying Chinese goods. Even if there is eventually a face-saving deal, it’s not bearish for gold!”
Bitcoin Falls by a higher percentage
Bitcoin has broken below the $11,000 mark and is currently testing the $10,500 support level.
BTC/USD 1-Day Chart on Bitstamp (TradingView)
The volatility and the low market capitalization compared to gold is causing more significant percentage drops in Bitcoin. As the safe haven rhetoric seems to be easing, Bitcoin [BTC] buyers seem to be reaching exhaustion. Peter Schiff, who is also a basher of Bitcoin, tweeted,
How low would Bitcoin’s price have to fall for FOMO to become FOLE; “fear of losing everything,” causing hodlers to finally throw in the towel? Or are hodlers so convinced they are right, that they will bravely go down with the ship, and ride Bitcoin all the way down to zero?
While the rhetoric between FOMO and FOLE are exciting ideas to explain speculative markets,