Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 11 to 17 January 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1%.
Market News Recap
Gold prices have been turbulent lately with a few highs and lows. Gold experienced a fall of 1.7% to USD 1,816.53 per ounce on 11 January and has hit its lowest price since 2 December 2020. The US 10-year Treasury yield remains firmly above 1%, strengthening the US dollar, which makes gold more expensive for buyers.
However, gold rose rose by 0.2% to USD 1,858.56 per ounce on 13 January as Asian stocks traded lower due to US President Donald Trump’s impeachment after the recent protest at the Capitol. The temporary fall in US Treasury yields and ease in the dollar also contributed to the rise in gold prices. Furthermore, the global economy continues to dampen, with over 91 million global coronavirus infections. As the increase in Covid-19 cases and a new virus strain outweigh the pace of vaccine rollouts, gold is expected to remain bullish in the year 2021.
Gold prices continue to be pressured by the fluctuations of the US Treasury yields and dollar. Supported by a possible US fiscal stimulus and the Federal Reserve’s dovish monetary policy stance, gold rose 0.1% to USD 1,848.75 per ounce on 15 January. However, gold fell more than 1% at USD 1,827.90 per ounce on 16 January as the US dollar climbed higher. The effect of the rising dollar has offset the bullion’s appeal as an inflation hedge after Joe Biden proposed a USD 1.9 trillion stimulus package. Gold could potentially lose more in the short term but investors remain confident with their focus on the US earnings, increased spending, and the Fed’s support for large stimulus.
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