Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 10 to 16 May 2021).
Statistics from the past 7 days showed that the EGU prices have been stable within a range of 0.04%.
Market News Recap
Gold remained promising after last week’s exciting gains. Gold increased 0.1 percent to USD 1,832.26 per ounce last Monday, supported by declining US job growth. The US central bank is expected to stall for time for inflation and employment numbers to start rising. As such, the interest rate for the dollar index is kept low, boosting the metal’s appeal to investors outside of the US.
On Tuesday, gold hovered around USD 1,836.26 per ounce due to the weakening of US Treasury yield and the increase in the dollar index. Bond yields have been kept below 1.6 percent, while the dollar index increased by 0.1 percent.
However, the situation reversed mid-week as rising bond yields and the strengthening of the US dollar dampened the rise of gold prices, dropping to USD 1,832.73 per ounce. Moreover, the dollar index increased by another 0.1 percent again, reducing the appeal of gold for other currency holders.
Towards the end of the week, gold bounced back and rose 0.2 percent to USD 1,829.61 per ounce on Friday. Stephen Innes, a managing partner at SPI Asset Management, stated that gold is likely to remain supported as there is no sign of a rise in interest rates on the horizon.
Harshal Barot, a Senior Research Consultant for South Asia at Metals Focus, also noted that bond yields would remain lower if inflation is temporary. The expectations of inflation will bring about bullish sentiments in the gold market.
1. Gold firms as US jobs data miss cements low rates view – The Business Times
2. Gold flat as US yields negate firmer dollar – The Business Times
3. Gold eases on firmer dollar, yields; all eyes on US inflation data – The Business Times
4. Gold edges up as weaker dollar counter rate jitters – The Business Times
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