Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 1 to 11 April 2021).
Statistics from the past 11 days showed that the EGU prices have risen by less than 1% on seven days and increased between 1% to 3% on the remaining four days.
Market News Recap
Last Monday, gold prices were steady, at USD 1,728.60 per ounce, after the announcement of the USD 2 trillion-plus jobs plan by US President Biden. A rise in vaccinations and additional pandemic relief stimulus cheques helped the US economy get off to a strong start in March; this year could be the US’s strongest economic performance in four decades.
Gold prices rose on Tuesday to their highest levels in over a week, reaching USD 1,735.30 per ounce. A weakened dollar and pullbacks in US bond yields increased demand for the metal, as investors rushed to other assets with higher potential returns.
As gold prices had been bullish for the past two days, profit-taking resulted in a natural pullback in prices. Investors cashed out their profits on Wednesday, causing gold prices to drop by 0.3 percent. The softened yields, said analysts, point towards a situation where central banks would remain dovish and support gold throughout the medium term.
Uncertainties among investors regarding interest rates led to a slight fall in gold prices on Thursday, though they stabilised later in the day. Analysts say there is an expectation that interest rates will be hiked in early 2022, thus increasing the opportunity cost of holding gold. Despite this, gold prices have been supported by lower US dollar and Treasury yields.
Towards the end of the week, gold prices fell again in response to indications of a potential recovery for China’s economy. Ravindra Rao, vice-president, commodities at Kotak Securities, explained, “Gold is facing some headwinds due to optimism around the recovery story as a result of strong data that has been coming out of the United States and China”.
Brian Lan, managing director at dealer GoldSilver Central observed that the weakening of the US dollar and Treasury yields, lockdowns in Europe, and the Federal reserve’s dovish tone continue to support recent gold prices throughout the week. After two weeks of losses, the metal has gained 1.2 percent this week.
1. Gold steady as inflation bets counter firm US dollar, yields – The Business Times
2. Gold steadies amid recovery optimism after US jobs report – The Business Times
3. Gold hits over one-week high as dollar, yields slip – The Business Times
4. Gold dips as strong US data sparks economic recovery hopes – The Business Times
5. Inflation worries keep gold steady after Fed maintains stance – The Business Times
6. Gold slips after promising China data – The Business Times
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