Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 14 to 20 June 2021).
Statistics from the past week showed that the EGU prices have risen by less than 1% on five days and increased between 3% to 4% on the remaining two days.
Market News Recap
Last week, gold prices went on a steady decrease, hitting USD 1,797.25 per ounce last Thursday. This drop brought gold close to its lowest price since 6 May 2021. The sudden change was caused after a majority of the Federal Reserve officials announced their projected increase in rates early, causing the dollar to reach a two-month high along with higher benchmark yields.
“There’s growing nervousness about rising inflation and the feeling in precious metal markets is that central banks have to start to respond a bit more aggressively to these inflationary pressures,” ED&F Man Capital Markets analyst Edward Meir said. He also mentioned that while gold could face a “short-lived” setback, it will still likely be bought “on the dips” over rising inflation concerns.
Given the progress in vaccination, the US central bank also said it would take into consideration whether to cut back its asset purchases, and downgraded the risk from the COVID-19 pandemic. “If the economic recovery that is just beginning leads to further rising prices, this should also support the yellow metal,” said Alexander Zumpfe, senior precious metals trader at Heraeus.
In spite of the US Federal Reserve’s aggressive announcement on monetary policy affecting the bullion’s appeal, spot gold was up 0.6 percent at USD 1,784.16 per ounce on Friday. ED&F Man Capital Markets analyst Edward Meir said, “the reaction in gold has been somewhat overdone but despite the current high-growth, inflationary environment, the proposed Fed rate hikes are not expected to set in for at least another 18 months. So, after a little bit more weakness here, gold prices will regroup and push higher.”
1. Gold slides over 1 percent on dollar strength as Fed meeting looms – The Business Times
2. Gold drops to near four-week low as key Fed meeting in focus – The Business Times
3. Gold falls on bets US Fed may outline taper plan – The Business Times
4. Gold slides below USD 1,800 after Fed’s hawkish tilt – The Business Times
5. Gold ticks up but eyes worst week since March 2021 after hawkish Fed – The Business Times
6. Gold collapses on Fed’s more hawkish outlook – The Business Times
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