Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 15 to 21 March 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1% on five days, and increased between 1% to 2% on the two remaining days.
Market News Recap
Gold prices dropped last week as a report from China revealed that the country’s industrial output and retail sales have been surging in the first two months of the year, hinting at economic recovery. In addition, the surge in US Treasury yields kept bullion under pressure.
However, gold prices hovered near their highest on Wednesday in more than two weeks due to higher inflation, going up 0.2 percent at USD 1,734.
Furthermore, Federal Reserve Chairman Jerome Powell promised to keep interest rates near zero in a bid to sustain the US’ economic recovery, even amid the potential scenario of inflation exceeding 2 percent this year. This statement contributed to Wednesday’s boost in prices.
On Thursday, gold prices dropped due to a surge in bond yields and a strengthening US dollar, overall hammering gold’s appeal to investors.
However, the situation reversed on Friday, as US Treasury yields dropped and the US dollar eased. Gold rose to USD 1,745.31, its highest this month.
Analysts say gold is viewed as a hedge against higher inflation due to stimulus measures. Additionally, the Federal Reserve’s comments on interest rates were in favour of gold. However, the rise in Treasury yields is continuously dulling the appeal of gold. Despite that, the first high-level US-China meeting got off to a rocky start on Thursday, thus supporting the prices of gold—seen as a safe-haven asset to have during times of political uncertainties.
1. Gold sheds gains on hopes of swift recovery after China data – The Business Times
2. Gold firms on inflation bets; focus on Fed policy verdict – The Business Times
3. Gold rises 1% after Fed reaffirms dovish stance – The Business Times
4. Gold slips as US yields spike; palladium at one-year peak – The Business Times
5. Gold up, heads for second weekly rise as US dollar eases off session high – The Business Times
6. High US bond yields cap gains in equities – Bangkok Post
7. Daily gold price history – USA Gold
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