Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 8 to 14 March 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1% on two days, increased between 1% to 3% on four of the days and the price increased above 3% on one of the remaining days.
Market News Recap
Gold prices slumped to a nine-month low on Monday, but a pullback in Treasury yields helped spark a recovery mid-week above the psychological USD 1,700 mark.
Gold prices rebounded on Tuesday as US Treasury yields edged lower, thus raising the appeal of holding gold.
However, gold prices dropped the following day by 0.2 percent. This is against the backdrop of the rising US yields, continued vaccine roll-outs and the passing by Congress of the USD 1.9 trillion stimulus package on Wednesday.
On Thursday, gold prices attempted to rise by 0.2 percent to USD 1,729.24 per ounce.
Nevertheless, the presence of firmer US bond yields and the strong dollar pressured gold prices to ease once again on Friday.
According to analysts, gold prices increased above USD 1,700 this week but could not break higher than USD 1,740. Prices need to break higher at USD 1,760 for gold to remain bullish.
One main factor contributing to the increase in gold prices this week was the announcement of the European Central Bank to ramp up its bond purchases. However, higher bond yields still had the most impact on gold prices.
Analysts are still holding out for a strong resurgence in prices this year, though. Goehring & Rozencwajg Associates believe a full turnaround is coming in the second half of the year. In addition, Barrick Gold CEO Mark Bristow observes that many investors are currently overly enthusiastic about riskier assets that don’t have real value. Such behavior could trigger a crash in the future, which will lead to a spike in gold as investors will end up seeking safe-haven assets.
1. Gold eases on firmer US yields, but set for best week in seven – The Business Times
2. Gold scales one-week peak as dollars, US yields ease – The Business Times
3. Gold falls back as US yields, dollar advance – The Business Times
4. Gold recovers from nine-month low as US yields retreat – The Business Times
5. Gold prices are beholden to bond yields – The Business Times
6. Is the worst behind us? Here’s what’s next for gold price – Kitco
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