Review of EGU Price for the Last Month
Statistics from the past 30 days showed that the EGU prices have risen by less than 1% on 26 days and increased between 1% to 4% across four days.
Market News Recap
Gold continued its upward momentum at the start of the month and hit USD 1,911.45 per ounce as the dollar continued to weaken due to rising inflation concerns.
It was short-lived as gold was bearish in the weeks that came because of the economic news from the European Central Bank (ECB) policy meeting and the latest monetary policy from the Federal Reserve. The news drove the dollar to reach a two-month high along with higher benchmark yields. Moreover, given the country’s vaccination progress, the US central bank also mentioned it would consider cutting back its asset purchases and downgrading the COVID-19 pandemic risk.
In the last week of June, gold prices finally went on a steady increase and hit USD 1,780.06 per ounce last Wednesday as the dollar and benchmark yields went down, their lowest since February. “The real yields are falling, helping gold prices to stabilise and attempt a rebound,” said Margaret Yang, a strategist at DailyFX, adding “investors are also taking this as an opportunity to buy the dip in view of rising inflationary pressure”.
Despite US Federal Reserve Chair Jerome Powell assurance last week not to raise interest rates quickly, gold prices fell last Thursday and Friday to USD 1,776.65 per ounce which reversed the gains earned early in the week. Alex Turro, senior market strategist at RJO Futures said concerns over possible rate hikes and tapering of asset purchases from the Fed would continue to weigh on sentiment in the gold market until the market gets more clarity on policy.
1. June EGU weekly digests
2. Gold prices firm as US Treasury yields slide – The Business Times
3. Gold ticks up on subdued dollar ahead of US fed chief’s testimony – The Business Times
4. Gold ticks up after Powell pledges not to raise rates quickly – The Business Times
5. Firm dollar keeps gold subdued, investors await more US data – The Business Times
6. Gold dips as mixed Fed outlook put investors on edge – The Business Times
7. Gold consolidates on mixed signals after Fed hawkish tilt – The Business Times
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