Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 8 to 14 February 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1% on five days, and increased over 2% on the remaining two days.
Market News Recap
Early last week, a weakening US dollar—coupled with optimism about a US fiscal stimulus—bolstered gold prices. On Wednesday, gold rose by 0.2% to US$1,840.96 per ounce. However, gold faltered the following day, as the US dollar rallied after experiencing a two-week low. Gold fell by 0.9% to USD 1,826.00 per ounce on Thursday. Throughout the week, gold failed to rebound to USD 1,850.00 an ounce.
Analysts say that if gold retreats below USD 1,800.00 as it did earlier this year, a large number of investors will be compelled to sell. “Gold’s inability to trade back over US$1,850 has triggered profit-taking as the sharp USD decline has eased,” said Tai Wong, head of precious metals derivatives trading at the Bank of Montreal.
Peter Hug, global trading director at Kitco Metals, believes it may take a while to see a resurgence of gold prices to the upside. However, he adds that a range of scenarios could take place, and that gold prices could land anywhere between USD 1,780.00 and USD 1,850.00 in the coming week.
Analysts also point out that in the long term, inflation will cause gold to rally, especially if the Biden administration gets approval for its proposed fiscal stimulus package. Should gold prices continue to dip now, it would be a good opportunity to buy at a cheaper price now for investors who can hold out for rewards in the longer term.
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