Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 15 to 21 February 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1% on two days, and increased over 1% on five days.
Market News Recap
It was a turbulent week for gold, marked by dips and recoveries. Bullion hit a seven-month low and fell by 2.4 per cent last week—its largest weekly drop since the second week of January.
Early last week, even as the US dollar edged lower, gold prices fell due to a rise in long-term US treasury yields. On Wednesday, February 17, gold prices dropped to a 2.5-month low of USD 1,768.60.
However, gold rebounded the following day, rising 0.4 per cent at USD 1,782.64 per ounce. This recovery was propelled by a drop in US Treasury yields and the return of Chinese dip buyers from the Lunar New Year holidays.
On Friday, gold slumped again as both the US dollar and Treasury yields rallied. The trend was again reversed on Saturday, as the US dollar fell once more.
Going forward, yields will continue to put pressure on gold prices. Expectations of higher inflation are driving up Treasury yields, putting pressure on bullion.
However, anticipating prices for the year, analysts say gold will benefit from low real interest rates and expansionary monetary policy in the US. Think of gold’s behaviour like a tsunami, say analysts from Commerzbank—its prices may be receding now, but will surge back with force in the future.
Click Here For More Information