Dear users,

We know many are kept wondering why we have been delaying our gold subscription event as we have received many requests from some of our users for one to be held as soon as possible—especially from those of you who have reward points that were acquired during our campaigns held in the last quarter of 2020. We want to let you know that your feedback has not been ignored.

Sincerely, we really want to thank you for the keen interest and participation in all our events to date—we cannot grow our platform without the support of our users.

We are aware of the two key problems—market prices and the lack of liquidity, which have affected users and made it extremely difficult to trade on our platform. Yet as a platform owner, we cannot get involved in manipulating the price volatility, so we scaled back our events in order to protect the interest of our users. At the same time, we also take this period of inaction to review what we have done or accomplished in order to strategise our next step in taking our business model further. Like a pupa going through metamorphosis to emerge into a beautiful butterfly—we concluded that our business model needs transformation to become a better platform with a stronger value proposition for our users.  

For these reasons, we will be making some strategic decisions and taking some actions to introduce changes to our platform. To develop and grow our business, we may even introduce other institutional investors to improve liquidity on our trading platform. In addition, we will also consult with the relevant regulatory authority about the introduction of more regulated fund products to our platform. Ultimately, the goal is to transform the way gold is traded and expand the scope of investment products in the best interest of our users. 

Ensuring the safety of your investment is of utmost important in order to protect the interests of all our users. As a registered gold dealer, the changes being made will be compliant to all regulatory requirements.

Some of the strategic changes we will be making in order to transform our business are as follows:

The above are just some of the changes we will be implementing to improve our platform and enhance our offerings to bring you a better trading experience. Please wait patiently while we make fundamental changes to transform our business model.

Everest Gold Team

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.  

Sources:
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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Dear users,  

This awesome Apriltrade your way up to becoming one of our top 15 Everest Gold Bullionaires to take home attractive CapitaVouchers* worth SGD 4,800 

Here are the full details:  

Event Period
12 Apr 2021, 1200hrs to 25 April 2021, 2359hrs (GMT+8) 

Who can take part?
All verified Everest Gold users (Worldwide) 

How to be eligible:
1. Download the Everest Gold app, register an account and get verified
2. Conduct at least 10 trades (Buy= 1 Trade, Sell = 1 Trade)
3. Total transacted value is no less than USD 300

Rewards
The top 15 users will be ranked based on their overall transacted value and each will be rewarded with CapitaVouchers* as follows:

*Terms and conditions apply. Please click here for more information. 

Everest Gold Team  

Review of EGU Price for the Last Month
Statistics from the past 31 days showed that the EGU prices have risen by less than 1% on 20 days and increased between 1% to 7% across 11 days. EGU prices hit above 6% for two days, namely on 8 and 28 March.  

Market News Recap
March has been a stressful month for gold as it struggled for a rebound in prices, only to succumb to strong US Treasury yields and a rising US dollar. At the start of the month, inflation pushed US Treasury yields higher, preventing gold prices from going up.  

In the second week of March, gold prices recovered above the psychological USD 1,700 mark. However, they could not break higher than USD 1,760, which is the current benchmark for gold to prove bullish, according to the Business Times. Despite the passing of the USD 1.9 trillion stimulus package by Congress, strong bond yields continued to add pressure to gold prices.

In the following week, gold prices managed to rise as a result of higher inflation due to stimulus measures. In addition, the US Federal Reserve promised to keep interest rates near zero as the US tries to sustain its economic recovery.   

However, the sudden fall of the Turkish lira dealt a new blow to gold prices near the end of March. Turkey unexpectedly decided to replace its central bank governor—a move that plunged the lira down by 15 percent. This caused investors to seek refuge in the US dollar and bonds.  

Despite the struggles that gold is facing, CPM Group’s Annual Gold Yearbook stated that gold would experience more medium- and long-term gains this year. The Group believes that the pandemic will continue to exacerbate existing problems, such as slow economic growth, debts, and budget deficits. Besides, recovery is a long road—vaccine rollouts have been met with logistical challenges, especially in rural areas. There also looms the possibility of a fourth wave of Covid-19 infections. These issues will support gold prices in the coming months.  

In addition, analyst Steve Dunn, head of exchange-traded products at Aberdeen Standard Investments, observed that while bond yields are rising, the US central bank will step in to ensure they do not rise beyond 2 percent in order to control the rise of interest rates and the US dollar.  

Meanwhile, very loose fiscal policies will give gold a further boost. The Group also predicts that deteriorating US-China relations will drive investors towards gold as a safe haven. These factors could bring gold back up to USD 1,995 per ounce this year, says Rohit Savant, vice president of research at CPM Group. 

Sources:
1. Headwinds from the dollar and bond yields buffet gold – The Business Times  
2. CPM Group: The pandemic ‘changed the world’ and gold price will reap the benefits – Kitco
3. Aberdeen Standard Investments: Gold prices can still rise to $2,000 as rising bond yields force Fed action – Kitco

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Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 15 to 21 March 2021). 

Statistics from the past seven days showed that the EGU prices have risen by less than 1% on five days, and increased between 1% to 2% on the two remaining days.

Market News Recap 
Gold prices dropped last week as a report from China revealed that the country’s industrial output and retail sales have been surging in the first two months of the year, hinting at economic recovery. In addition, the surge in US Treasury yields kept bullion under pressure.    

However, gold prices hovered near their highest on Wednesday in more than two weeks due to higher inflation, going up 0.2 percent at USD 1,734.   

Furthermore, Federal Reserve Chairman Jerome Powell promised to keep interest rates near zero in a bid to sustain the US’ economic recovery, even amid the potential scenario of inflation exceeding 2 percent this year. This statement contributed to Wednesday’s boost in prices.  

On Thursday, gold prices dropped due to a surge in bond yields and a strengthening US dollar, overall hammering gold’s appeal to investors.  

However, the situation reversed on Friday, as US Treasury yields dropped and the US dollar eased. Gold rose to USD 1,745.31, its highest this month. 

Analysts say gold is viewed as a hedge against higher inflation due to stimulus measures. Additionally, the Federal Reserve’s comments on interest rates were in favour of gold. However, the rise in Treasury yields is continuously dulling the appeal of gold. Despite that, the first high-level US-China meeting got off to a rocky start on Thursday, thus supporting the prices of gold—seen as a safe-haven asset to have during times of political uncertainties.  

Sources:
1. Gold sheds gains on hopes of swift recovery after China data – The Business Times 
2. Gold firms on inflation bets; focus on Fed policy verdict – The Business Times
3. Gold rises 1% after Fed reaffirms dovish stance – The Business Times
4. Gold slips as US yields spike; palladium at one-year peak – The Business Times
5. Gold up, heads for second weekly rise as US dollar eases off session high – The Business Times
6. High US bond yields cap gains in equities – Bangkok Post 
7. Daily gold price history – USA Gold


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Sociopolitical events, especially US political and economic conditions, are known to heavily affect gold prices. In 2020, prices for gold increased by 25 percent, owing to US political tensions and an economic downturn wrought by the Covid-19 pandemic. 

Several events from 2020 are spilling over into 2021. The world is still fighting against the pandemic, racing against time to produce vaccines, and struggling to recover from an economic recession

With almost one quarter of the year passed, what does the rest of 2021 have in store for gold investors? 

Passing of the US fiscal stimulus package

With the Covid-19 pandemic and economic recession, rolling out vaccines and stimulating economic growth are on top of the US government’s agenda. 

The US Congress passed a USD 1.9 trillion stimulus package on March 10, just in time for the expiration of unemployment aid on March 14. 

The stimulus package provides USD 400 billion for USD 1,400 direct payments to most Americans and USD 350 billion in aid to state and local governments, among others. 

Such a large stimulus package could raise inflation as the US pumps more dollars into the global financial system, with more debt being created by the Federal Reserve—ultimately weakening the currency. This pushes gold prices higher as gold is seen as a hedge against inflation

Ongoing Covid-19 vaccination programmes

Many countries have begun rolling out Covid-19 vaccines. Joe Biden, the President of the United States, announced a goal of administering more than 1.5 million Covid-19 vaccine doses per day and has vowed to administer 100 million vaccine doses by April 30.

The country appears to be on pace to hit this goal, and even to achieve it ahead of schedule. This leads to a positive economic outlook as mass vaccination will help control the pandemic. As economies start bouncing back, though, gold prices could fall as investors regain their appetite for riskier assets. 

New Covid-19 strain fears 

New variants of the coronavirus have surfaced and appear to be more contagious than the original strain. A UK variant, now dominant in much of Britain, has spread to more than 50 countries. Meanwhile, a South Africa variant has been found in at least 20 other countries, leading to new waves of infections. 

It’s not yet known whether the current vaccines are effective against the new strains. If the virus continues to mutate, the world might find itself stuck in a loop of continually trying to contain and prevent new infections. 

All this lends uncertainty to the global economic outlook in 2021. Traders may end up seeking shelter in safe-haven assets, such as gold, driving up both demand and prices. 

The surge in bond yields

The recent rise in US yields, however, has eroded gold’s appeal as an inflation hedge. This is due to the development of Covid-19 vaccines and the fiscal stimulus package that the US Congress has passed. 

The rise in bond yields signifies that investors are hopeful for more economic growth in the near future. It also shows that the market is preparing to reopen the economy for post-pandemic growth. 

This increases the opportunity cost of holding non-yielding bullion (gold), pushing the gold price lower.

The decrease in weekly job claims

The number of Americans filing new claims for state unemployment benefits dropped to a four-month low in early March. This suggests that the rate of unemployment is going down in the US. Economists believe the labour market will regain strength in the spring and through summer, as more people get vaccinated. 

A strengthening job market will improve the US economic outlook, and investors may regain their confidence in diversifying their assets and making riskier bets. A drop in demand for gold in favour of higher-risk assets would push down prices.

Interested to start investing in gold?

2021 is turning out to have a brighter economic outlook than 2020, but this isn’t necessarily great news for gold investors. In fact, gold prices have been dipping since the start of the year.

But the optimism that economists have for 2021 is tempered with caution, given the new coronavirus strains and uncertainties surrounding vaccine effectiveness and market recoveries. 

Due to these reasons, investors believe gold prices will surge back with strength as 2021 progresses. Some analysts even predict that this year’s annual average gold price will be 11.5 percent higher than that of 2020.

Are you thinking of starting your investment journey this year? With market uncertainties, gold is a great asset to hold as a low-cost investment with relatively low risks. 

If you want to invest in gold, try out the Everest Gold platform and enjoy zero transaction fees. Download the app from the Apple Store and Google Play Store today to start your investment journey! 

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. 

Sources:
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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Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 1 to 7 March 2021).

Statistics from the past seven days showed that the EGU prices have risen by less than 1%. 

Market News Recap 
Gold prices rebounded earlier in the week, with spot gold rising 1 percent to USD 1,750.49 per ounce after dropping 2.1 percent to the lowest close since mid-June last Friday.  

On Tuesday, gold prices slumped to the lowest in eight and a half months, as a stronger dollar and rise in US Treasury yields eroded investors’ appetite for the metal. Spot gold dropped to its lowest since June 15 at USD 1,708.60.

Gold prices attempted to rebound on Thursday, but headed for a third weekly loss the following day as it declined to USD 1,693.14 an ounce.  

As inflation pushes US Treasury yields higher, gold prices will continue to be pressured in the near term.  

However, Evy Hambro, global head of thematic and sector-based investing at BlackRock, stated that from a longer-term view, gold prices will move higher, given supportive trends such as rising incomes in emerging markets boosting physical demand, and the continuing decline of global annual mine production.  

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Review of EGU Price for the Last Month
Statistics from the past 28 days showed that the EGU prices have risen by less than 1% on 16 days and increased between 1% to 6% across 12 days. There was a price increase above 3% for two days, namely on 2 February and 3 February. We attributed the result to market volatility caused by the start of the Trading Competition Grand Final, where users were actively trading their EGUs in preparation for it, and hence, creating a higher price change.

Market News Recap
February has been tumultuous for gold. The metal saw new lows amid rising US Treasury yields, which offset gains from a weakening dollar. However, Commerzbank analysts say it’s a tsunami scenario–prices now are pulling back but will surge again with force later in the year. 

In the beginning of February, both the US dollar and Treasury yields rallied to push the price of gold below the psychological level of USD 1,800 in the first week of February. However, it bounced back to USD 1,810.26 per ounce as the week ended, amid a weakening dollar and dismal US employment data. 

This turned out to be a temporary reprieve. On February 17, gold prices dropped to a 2.5-month low of USD 1,768.60. Even as prices continued to fluctuate throughout the month, they repeatedly fell below USD 1,800 and remained at that level as February came to a close. 

“Overall, there are conflicting forces. We have the rising yields, but a weaker dollar,” said Bank of China International analyst Xiao Fu. Anticipation of economic recovery has also threatened gold’s appeal as a safe-haven asset.  

But as the US lowers real interest rates and prepares for a stimulus package that could trigger high inflation, analysts believe gold will recover in the later half of 2021. Sunilkumar Katke, head of currencies and commodities at Axis Securities, believes gold could rebound to USD 2,000 this year.  

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Gold, like all other investments, has its risks and can be volatile depending on the economy. Determining the value in gold prices can be subjective, and it also depends on your risk appetite.  

Although gold is a relatively low risk and less volatile asset than stocks and bonds, there are certain optimal times to invest in gold to reap more market returns and limit your losses. 

During uncertainties in markets

Gold usually has its intrinsic value and an inverse relationship with other asset classes. Asset classes like stocks and bonds are often more vulnerable to market changes—when they fall, gold tends to be more bullish, and vice versa.  

During global economic downturns, gold prices tend to rise. As such, investors seek gold as a safe-haven asset as it can act as a hedge against inflation and withstand volatility better than other currencies. 

Many see gold as a recession-proof investment. This means that its value will not be easily affected by financial instability, allowing investors to hold their money and limit their stock market losses.  

For example, the Covid-19 pandemic has caused a major recession and unemployment in many countries, and global stock markets also plummeted. But these uncertainties tend to support gold prices. In fact, gold hit a record high price in August 2020 due to fears of further global economic downturn from rising coronavirus cases. 

If you think that there will be prolonged market volatility and economic crises that may cause stocks and bonds to decline, it would be a good time to invest in gold. 

During periods of ultra-low real interest rates

Gold prices have an inverse relationship with interest rates—interest rates may fluctuate according to the state of a nation’s economy, and gold is highly dependent on interest rates. When interest rates are low, gold usually benefits positively. 

In times of an economic crisis, governments tend to implement fiscal stimulus to help boost economic growth. A fiscal stimulus includes lowering tax and interest rates to increase people’s purchasing power in an attempt to help the economy recover. However, having low interest rates would also cause inflation to occur.  

When inflation increases more than interest rates, it’ll be more expensive to hold fiat currency and storing your money in gold can act as a hedge against inflation. Furthermore, when interest rates are extremely low or negative, other investments become more expensive to hold for investors, causing gold to be even more attractive.  

Hence, it is crucial to observe real interest rates when determining when is the best time to buy gold. Real interest rates are inflation-adjusted interest rates—when there are ultra-low real interest rates, gold becomes more appealing to investors as they become cheaper to buy and hold their wealth in gold. 

Rising tensions in the US economy and politics

The US influences gold in many ways, especially since gold prices are valued in US dollars. Gold’s appeal is highly dependent on both the US economy and political tensions surrounding it. 

Especially during this time when the pandemic has unprecedented impacts on the US economy, investors are keeping a close watch on gold prices. To combat the economic downturn, the US government has proposed major fiscal stimulus packages, which will cause the lowering of interest rates and a possible depreciation of the US dollar.  

A weak US dollar will make gold more attractive to buyers holding other currencies as it would be much cheaper to purchase gold. The weakening of the dollar and low interest rates will also cause gold prices to increase.  

Similarly, political tensions surrounding an upcoming US election also affect gold prices as candidates from different political parties propose policies concerning the US economy. Many investors tend to purchase gold as a form of protection during these periods of uncertainty. 

Constant observation of changes around the US economy and politics can help you find out when is a good time to buy gold.

How do you know exactly when to buy gold?

Like all other investments, gold also has its risks. For example, gold prices may fall when the economy prospers or starts to recover. Those listed above are the most prominent factors that tend to influence gold prices, but they are not the only factors.  

It’s essential to continuously observe market trends and forecasts to tell when is a good time to invest in gold. Gold prices vary everyday—make sure to keep up with gold updates and analyse gold trends through news publications and newsletters. 

Although there isn’t a way to find out exactly when is the best time to buy gold, it’s always good to have gold as part of your investment plan. Gold is a great way to diversify your investment portfolio to limit losses, especially when there is an unexpected economic crisis like the ongoing pandemic.  

If you want to invest in gold but are not sure how to start, try out a digital gold trading app like Everest Gold. It’s as easy as downloading the app and registering as a user to trade on the Everest Gold platform today!