Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 1 to 6 June 2021).
Statistics from the past 6 days showed that the EGU prices have risen by less than 1% on four days and increased between 1% to 4% on the remaining two days.
Market News Recap
Gold continued its upward momentum and hit past its resistance level of USD 1,900 at the start of last week. On Monday, gold rose 0.4 percent to USD 1,909.81 per ounce, supported by growing inflation concerns. The recent hike in US consumer prices increased gold’s demand as a hedge against inflation.
On Tuesday, gold climbed 0.2 percent to USD 1,911.45 per ounce against the backdrop of a weakening US dollar and continuous inflationary pressure. The dollar index had dropped 0.3 percent, making gold cheaper for investors outside of the US.
However, the situation reversed mid-week as gold dropped 0.1 percent to USD 1,898.58 per ounce on Wednesday. The US Treasury yields recovered overnight and climbed to more than a week’s high, increasing the opportunity cost of holding gold. On the other hand, robust US economic data signalled a recovery in the economy, resulting in investors seeking riskier assets over gold.
On Thursday, gold plummeted 1.9 percent to USD 1,871.91 per ounce due to a rise in the dollar index and a drop in US unemployment claims. The US dollar rose 0.7 percent, while US unemployment claims fell below 400,000, suggesting a robust recovery in the labour market.
Gold recovered 1 percent to USD 1,889.27 per ounce at the end of the week after US employment numbers failed to grow as much as projected. Bob Haberkorn, a Senior Commodities Broker at RJO Futures, predicted that gold would continue to ride on last month’s bullish sentiments and rise back up above USD 1,900 next week. With the ongoing inflationary pressure, signs of monetary policy tightening would be the only thing that might derail gold’s upward trend.
1. Gold set for best month since July 2020 on softer dollar, inflation woes – The Business Times
2. Gold scales near five-month peak on weaker dollar, inflation worries – The Business Times
3. Gold retreats from near five-month peak on firmer yields, equities – The Business Times
4. Gold slides over 2 percent as strong US data bolsters FED taper bets – The Business Times
5. Gold rebounds as US non-farm payrolls fall short of expectations – The Business Times
6. Gold price holds bullish line: Inflation and US dollar are key for next week – Kitco
Download Our App Today:
Google Play Store
Click Here For More Information