Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 1 to 10 January 2021).
Statistics from the past ten days showed that the EGU prices have risen by less than 1% on eight days and have increased by more than 1% on the remaining days.
Market News Recap
Gold rose above USD 1,900 an ounce on 4 January—its highest price in two months since 9 November. With a weaker US dollar and declines in US real yields, gold continues to become more appealing. The weakening of the US dollar eased as the country anticipated the Senate run-off elections in Georgia, which would determine the outcome of the upcoming fiscal stimulus.
However, as the week progressed, nominal bond yields climbed high above 1% and helped the US dollar rebound strongly. Gold fell 0.3% to USD 1,907.66 per ounce on 8 January, since hitting its highest on 9 November at USD 1,945.26 per ounce.
The riots that erupted on Capitol Hill in Washington DC affected gold prices drastically. But now that the US Congress has finalised Joe Biden’s election as the next US president, a surge in US Treasury yields has caused gold to fall, and gold performance is predicted to remain soft in the short term. With higher bond yields, investors are starting to shift demand to other assets. Gold fell 3.6% at USD 1,843.06 per ounce on 9 January, Saturday, falling below the USD 1,900 mark.
Currently, gold has to compete against higher bond yields and will be more greatly affected by short-term events instead of the upcoming US fiscal stimulus. Gold achieved an increase of 25% in 2020 and analysts believe that gold will remain bullish in the longer term as the Democrat win would indicate more fiscal stimulus, which means a weaker dollar and better support for gold in future.
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