Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 1 to 7 February 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1% on three days, increased between 1% to 3% on three of the days, and the price increased above 3% on one of the remaining days.
Market News Recap
Pressure from a rising US dollar and increasing global bond yields pushed the price of gold below the psychological level of USD 1,800 in the first week of February. This was brought on by growing confidence in the US economy’s recovery, reflected in a two-month high in the Dollar Index. A decrease in jobless claims in the US also indicated that the country’s labour market was stabilising. On February 4, as a result of these circumstances, gold dropped to its lowest price since December 1, at USD 1,784.76.
However, the week ended on a more optimistic note. Gold managed to reverse the downward trend, bouncing back to USD 1,810.26 per ounce on February 5. This was brought on by a 0.6% fall in the US dollar, as well as the release of the Labor Department’s employment report, which revealed that job losses in December 2020 were steeper than initially estimated. The data is believed to increase support for the Democrats’ USD 1.9 trillion COVID-19 relief package. The US House of Representatives approved the Democrats’ budget proposal, taking the stimulus package a step further towards approval.
With the possible inflation and weaker currency such a stimulus package can cause, gold remains an attractive hedge for investors. “Beyond the near term, we believe the outlook remains constructive for gold given the fiscal stimulus is likely to result in large US twin deficits,” said Standard Chartered analyst Suki Cooper.
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