Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 14 December 2020 to 20 December 2020).
Statistics from the past seven days showed that EGU prices have risen by more than 1% every day. The main reason for the market volatility which caused the price to rise beyond 100% is due to the increase in the supply of EGUs which dampened demand.
Market News Recap
The arrival of the Pfizer and BioNTech coronavirus vaccine in the US is the first step in the road to potential economic recovery and an improvement in Asian equities. The possible recovery of the economy caused gold prices to drop at the beginning of last week as major vaccine rollouts surpassed expectations of the US fiscal stimulus.
However, as the prospects of the vaccine are still uncertain, gold remains relatively bullish as the US dollar weakens further. Central bankers may authorise stimulus programmes soon due to the vaccine rollouts, but ultra-low yield and negative real interest rates are likely to uplift gold prices.
The bipartisanship of a USD 900 billion coronavirus relief plan could potentially keep interest rates near zero, and thus raise the price of gold. With growing anticipation of the US stimulus, gold rose by 0.1% at USD 1,855,71 per ounce on 15 December and to USD 1,863.89 per ounce the next day. As the fiscal package size remains unknown, investors look to the Bank of England’s policy decisions regarding Brexit, which will influence the gold prices for now.
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