Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 1 to 11 July 2021). 

Statistics from the past week showed that the EGU prices have increased between 0% to 4% across 11 days.   

Market News Recap 
The Federal Reserve’s monetary policy and overall condition of the US economy continued to impact global gold prices last week. In June, US companies hired the most workers in 10 months. The seemingly stronger-than-expected rebound in the US employment market has dampened investor sentiment on gold slightly. 

However, on closer look, the latest economic data revealed that benchmark 10-year Treasury yields have dropped to their lowest in more than four months—suggesting that the US economy’s rebound is not as robust as it seems. Last Thursday, the European Central Bank also announced that it would adopt a symmetric 2 percent inflation target over the medium term. 

Last Tuesday, spot gold steadied at USD 1,792.34, close to a two-week high. The dollar remained subdued after Wednesday’s release of minutes from the Fed’s latest meeting. As a result, gold recovered from weeks of consolidation and ended the week at USD 1,803.01 per ounce.  

The final major factor impacting gold in the short- and medium-term is the Covid-19 pandemic. A recent global rise in coronavirus infections caused by the virulent Delta variant could slow economic recoveries for some time and cause consumers to seek safe haven in gold.  

Sources:
1. Gold eases off two-week high as US dollar firms – The Business Times
2. Gold hovers near two-week high on softer dollar, Fed minutes awaited – The Business Times
3. Gold slips from three-week peak as dollar firms ahead of Fed minutes – The Business Times 
4. Gold steady above USD 1,800 as lower yields counter strong dollar – The Business Times 
5. Gold strangely finds comfort from the Fed hawkish tilt – The Business Times 
6. ECB’s governing council approves its new monetary policy strategy – European Central Bank Press Release

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Dear users,

It has been a month since we launched our ‘Gold Collection’ feature. If you have missed the announcement on it, you can read more about it here

Gold Collection is a brand-new feature now available in our app. With this feature, users could directly collect their physical gold bar anytime and anywhere. Follow these 5 easy steps below to submit a request and exchange EGU for real gold that comes in 5g, 50g, 100g, and 1kg. 

If you have any questions regarding Gold Collection, please contact our Customer Service at [email protected].

Everest Gold Team

Review of EGU Price for the Last Month
Statistics from the past 30 days showed that the EGU prices have risen by less than 1% on 26 days and increased between 1% to 4% across four days.

Market News Recap
Gold continued its upward momentum at the start of the month and hit USD 1,911.45 per ounce as the dollar continued to weaken due to rising inflation concerns.  

It was short-lived as gold was bearish in the weeks that came because of the economic news from the European Central Bank (ECB) policy meeting and the latest monetary policy from the Federal Reserve. The news drove the dollar to reach a two-month high along with higher benchmark yields. Moreover, given the country’s vaccination progress, the US central bank also mentioned it would consider cutting back its asset purchases and downgrading the COVID-19 pandemic risk. 

In the last week of June, gold prices finally went on a steady increase and hit USD 1,780.06 per ounce last Wednesday as the dollar and benchmark yields went down, their lowest since February. “The real yields are falling, helping gold prices to stabilise and attempt a rebound,” said Margaret Yang, a strategist at DailyFX, adding “investors are also taking this as an opportunity to buy the dip in view of rising inflationary pressure”. 

Despite US Federal Reserve Chair Jerome Powell assurance last week not to raise interest rates quickly, gold prices fell last Thursday and Friday to USD 1,776.65 per ounce which reversed the gains earned early in the week. Alex Turro, senior market strategist at RJO Futures said concerns over possible rate hikes and tapering of asset purchases from the Fed would continue to weigh on sentiment in the gold market until the market gets more clarity on policy. 

Sources:
1. June EGU weekly digests 
2. Gold prices firm as US Treasury yields slide – The Business Times 
3. Gold ticks up on subdued dollar ahead of US fed chief’s testimony – The Business Times
4. Gold ticks up after Powell pledges not to raise rates quickly – The Business Times
5. Firm dollar keeps gold subdued, investors await more US data – The Business Times
6. Gold dips as mixed Fed outlook put investors on edge – The Business Times
7. Gold consolidates on mixed signals after Fed hawkish tilt – The Business Times 

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Dear users, 

In this announcement, we want to highlight on a key area of concern for most of our users—liquidity. 

Some of you may have questions about why we removed the Order Book from the app. We removed it because we found it to be a major factor that impacted liquidity and gold prices, as a result our EGU prices were not competitive against international gold prices, which directly affected profitability for trading on our platform. We are certain that overall liquidity on the platform will improve without the Order Book. In addition, it will also encourage a healthier trading environment without the existence of Trading History and Order Book to influence our users in their buy and sell decision. 

In removing the Order Book, we have also included international gold price and estimated bank gold price. These prices will provide our users with a reference to help you determine the price to set when buying and selling EGU on our trading platform, this will help to ensure that the price traded on our platform is competitive with international gold price. We strongly believe that over time, this would improve liquidity for all our users. 

As we looked for ways to enhance liquidity on our platform, we have also made the major decision to cooperate with institutional investors and invite them to trade on our platform. In order to improve liquidity, we need to improve transaction volume on our platform. We firmly believe that these institutional investors can help to stabilise and maintain the competitiveness of our gold price with international gold price, and at the same time help to eliminate abnormal price fluctuations caused by sudden surges in demand and supply. 

We have good news to share. To further improve liquidity on our platform, Everest Gold will introduce a new Gold Buyback initiative in mid-July. This scheme will allow users to cash out their EGU by initiating a gold sellback to Everest Gold. It will provide a channel for our users to easily cash out and liquidate their EGU when they find that the platform lacks liquidity. 

Platform liquidity has always been our concern. Because we have to make sure that users can get the maximum benefit from trading on our platform. 

If you have any questions, please contact our Customer Service through this email address [email protected].  

Everest Gold Team 

Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 14 to 20 June 2021). 

Statistics from the past week showed that the EGU prices have risen by less than 1% on five days and increased between 3% to 4% on the remaining two days.   

Market News Recap 
Last week, gold prices went on a steady decrease, hitting USD 1,797.25 per ounce last Thursday. This drop brought gold close to its lowest price since 6 May 2021. The sudden change was caused after a majority of the Federal Reserve officials announced their projected increase in rates early, causing the dollar to reach a two-month high along with higher benchmark yields. 

“There’s growing nervousness about rising inflation and the feeling in precious metal markets is that central banks have to start to respond a bit more aggressively to these inflationary pressures,” ED&F Man Capital Markets analyst Edward Meir said. He also mentioned that while gold could face a “short-lived” setback, it will still likely be bought “on the dips” over rising inflation concerns.  

Given the progress in vaccination, the US central bank also said it would take into consideration whether to cut back its asset purchases, and downgraded the risk from the COVID-19 pandemic. “If the economic recovery that is just beginning leads to further rising prices, this should also support the yellow metal,” said Alexander Zumpfe, senior precious metals trader at Heraeus. 

In spite of the US Federal Reserve’s aggressive announcement on monetary policy affecting the bullion’s appeal, spot gold was up 0.6 percent at USD 1,784.16 per ounce on Friday. ED&F Man Capital Markets analyst Edward Meir said, “the reaction in gold has been somewhat overdone but despite the current high-growth, inflationary environment, the proposed Fed rate hikes are not expected to set in for at least another 18 months. So, after a little bit more weakness here, gold prices will regroup and push higher.” 

Sources:
1. Gold slides over 1 percent on dollar strength as Fed meeting looms – The Business Times
2. Gold drops to near four-week low as key Fed meeting in focus – The Business Times
3. Gold falls on bets US Fed may outline taper plan – The Business Times
4. Gold slides below USD 1,800 after Fed’s hawkish tilt – The Business Times
5. Gold ticks up but eyes worst week since March 2021 after hawkish Fed – The Business Times
6. Gold collapses on Fed’s more hawkish outlook – The Business Times

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Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 7 to 13 June 2021). 

Statistics from the past week showed that the EGU prices have increased between 0% to 1% on all seven days. 

Market News Recap 
Last week, gold prices remained stable just below USD 1,900 per ounce as investors awaited economic news from the European Central Bank (ECB) policy meeting and the release of the Federal Reserve’s US inflation data. US economic data helps inform investors of potential inflationary pressure, which in turn impacts the price and role of gold in portfolios. 

At the beginning of the week, the dollar index held steady and US benchmark 10-year Treasury yields hovered at a month-long low. On Tuesday, spot gold dropped 0.2 percent to USD 1,895.59; two days later, it dropped 0.1 percent to USD 1,886.66 per ounce as the dollar traded higher ahead of the meeting of European Central Bank and the Federal Reserve’s US inflation data release later in the day. 

The reveal of the US inflation data on Thursday drove lower bond yields and a pullback in the dollar. The rise in US inflation was not significant enough to change the Federal Reserve’s current dovish economic stance, nor did it shake investor confidence in the Fed’s management of the nation’s economic growth. Overall, prices rose more than 0.5% last week, and gold ended the week just above USD 1,900 per ounce. 

Jeffrey Halley, senior market analyst at Oanda, says, “The FOMC (Federal Open Market Committee) next week is now likely to be a non-event. Gold looks set to test resistance at USD 1,920 early next week, as the asset price appreciation trade gains new momentum.”

Sources:
1. Australia: shares inch higher as gold stocks shine; New Zealand rises – The Business Times
2. Gold prices dip on strong dollar ahead of US inflation data – The Business Times
3. Gold subdued with focus on US data, ECB meeting – The Business Times
4. Gold reclaims USD 1,900 mark as dollar, yields slip after US data – The Business Times
5. Gold hangs on to USD 1900, supported by ECB decision and US inflation data – The Business Times
6. Gold slips as dollar strengthens on transitory inflation view – The Business Times
7. Precious – gold hovers near USD 1,900 per ounce as dollar, yields dip after US data – Reuters
8. Precious – gold tops USD 1,900 per ounce mark as dollar, yields dip after US data – Reuters

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The first half of the year has been a tumultuous one for gold. It has risen and fallen against the backdrop of the US dollar and US Treasury yields. In addition, sociopolitical events, particularly political and economic situations in the US, have impacted gold prices significantly.  

Despite this turbulence, in the long run, gold is still a safe-haven asset in times of crisis—it is considered a good hedge against inflation

The US economy is now in the midst of recovery; the world is still battling with Covid-19. Consequently, with so much uncertainty and volatility, how will upcoming events affect gold prices for the rest of the year?  

Emergence and surge of new Covid-19 Strains

The new Covid-19 strain, first spotted in India, has now been seen in more than 60 countries since the beginning of the year. This new strain, known as the Delta variant, seems to be more transmissible than the other variants. Coupled with the decreasing effectiveness of vaccines against the Delta variant, it has led to a surge in Covid-19 cases across various Southeast Asian countries.  

The ongoing surge in cases will cause uncertainty and an unfavourable global economic outlook among investors. As a result, investors will turn to gold as a safe-haven asset, thus driving up the demand and subsequently its price.  

The success of vaccination programs in the US

Vaccination rollouts in the US have been a success thus far. At the start of May, President Joe Biden set a goal of having 70 percent of adults given at least one dose by 4th July. As of June, 64 percent of adults have already received a shot, while 52 percent are fully vaccinated. As such, the US vaccination program is on track to reach its goal by July.  

If the mass rollout of vaccination in the US can contain the spread of the Covid-19 virus in the second half of the year, it will eventually lead to a strong economic recovery. With an economic outlook on the upswing, investors will regain their appetite for riskier investments, thus dampening gold prices.   

Volatility in other investment markets

On the other hand, the cryptocurrency market has been experiencing volatility lately. Elon Musk had declared on Twitter in mid-May that Tesla would no longer accept bitcoin, owing to its high environmental costs. As a result, the announcement caused a major sudden drop in the market, turning market sentiments bearish.  

In addition, China had decided to suppress the digital trading market by banning cryptocurrency exchanges. Bitcoin’s market value plummeted 50 percent from more than USD 1 trillion to below USD 630 billion in May.  

Even as the cryptocurrency market attempts to recover from its crash, investors have seen how volatile this investment asset can be. Thus, they will be increasingly motivated to seek shelter in safe-haven assets like gold. 

US economic growth  

The most recent economic data for 2021 presents a strong growth in the US economy. In the first quarter of the year, the US economy had grown by 6.4 percent. The economic recovery is attributed to the USD 1.9 trillion stimulus package, which has encouraged more robust public spending.  

Furthermore, US weekly unemployment claims have fallen past 400,000 in the last week of May, indicating a recovery in the labour market. A lower unemployment rate will push the US dollar up, putting pressure on gold prices.  

However, with fiscal measures in place, the Federal Reserve will incur more debt, thus weakening the dollar index. A pullback in the US dollar will support gold as it will be cheaper for investors outside the US to purchase gold. 

Investors will also expect inflation for the rest of the year as fueled by increased public spending. As a result, gold prices will rise as it is seen as a hedge against inflation. Overall, inflation concerns will bring about bullish sentiments in the gold market.

Ready to begin your gold investment journey? 

Gold remains optimistic at the half-year mark despite pressure from the US economic recovery. Analysts believe that with the ongoing inflationary pressure, gold will continue to ride an upward trend.  

With unpredictability and uncertainty in the market, it is crucial to diversify your investment and consider gold in your portfolio. As a secure investment, gold is not correlated to stocks and other financial assets. This ensures your portfolio has a lower risk in this volatile market.  

Are you interested in starting your gold investment journey this year? There are many online trading platforms for you to choose from to begin your gold trading.  

Everest Gold is a convenient platform that allows you to trade anytime and anywhere through their app. As a reliable platform, the gold on the app is backed by actual physical gold, yet secured and insured by Everest Gold.  

Try out the Everest Gold platform and enjoy zero transaction fees. It is as simple as downloading the app from the Apple Store and Google Play Store

Review of EGU Price for the Past Week 
The following is the daily gold price change of Everest Gold (from 1 to 6 June 2021). 

Statistics from the past 6 days showed that the EGU prices have risen by less than 1% on four days and increased between 1% to 4% on the remaining two days. 

Market News Recap 
Gold continued its upward momentum and hit past its resistance level of USD 1,900 at the start of last week. On Monday, gold rose 0.4 percent to USD 1,909.81 per ounce, supported by growing inflation concerns. The recent hike in US consumer prices increased gold’s demand as a hedge against inflation.  

On Tuesday, gold climbed 0.2 percent to USD 1,911.45 per ounce against the backdrop of a weakening US dollar and continuous inflationary pressure. The dollar index had dropped 0.3 percent, making gold cheaper for investors outside of the US.  

However, the situation reversed mid-week as gold dropped 0.1 percent to USD 1,898.58 per ounce on Wednesday. The US Treasury yields recovered overnight and climbed to more than a week’s high, increasing the opportunity cost of holding gold. On the other hand, robust US economic data signalled a recovery in the economy, resulting in investors seeking riskier assets over gold.  

On Thursday, gold plummeted 1.9 percent to USD 1,871.91 per ounce due to a rise in the dollar index and a drop in US unemployment claims. The US dollar rose 0.7 percent, while US unemployment claims fell below 400,000, suggesting a robust recovery in the labour market.  

Gold recovered 1 percent to USD 1,889.27 per ounce at the end of the week after US employment numbers failed to grow as much as projected. Bob Haberkorn, a Senior Commodities Broker at RJO Futures, predicted that gold would continue to ride on last month’s bullish sentiments and rise back up above USD 1,900 next week. With the ongoing inflationary pressure, signs of monetary policy tightening would be the only thing that might derail gold’s upward trend.  

Sources:
1. Gold set for best month since July 2020 on softer dollar, inflation woes – The Business Times 
2. Gold scales near five-month peak on weaker dollar, inflation worries – The Business Times
3. Gold retreats from near five-month peak on firmer yields, equities – The Business Times
4. Gold slides over 2 percent as strong US data bolsters FED taper bets – The Business Times
5. Gold rebounds as US non-farm payrolls fall short of expectations – The Business Times
6. Gold price holds bullish line: Inflation and US dollar are key for next week – Kitco

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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 22 days and increased between 1% to 11% across nine days. EGU prices hit the highest, at above 10% on 28 May, the day where EGU Conversion officially started.  

Market News Recap
Gold had a victorious start in May as it reached USD 1,830.41 per ounce, hitting past its highest mark since February. The declining US jobs growth in April had resulted in a drop in bond yields and the dollar, thus boosting gold prices by 3.5 percent in the first week of the month. 

Gold remained optimistic in the second week of May, despite a slight pressure from US Treasury yield and the dollar index. Supported by the contracting US job growth and inflation concerns, gold settled at USD 1,829.61 per ounce for the week.  

Gold was bullish in the following week, rising to USD 1,876.42 per ounce. The surging Covid-19 cases in several Asian countries and the latest volatility in cryptocurrencies had regained gold’s appeal as a safe-haven asset. As a result, gold secured a weekly gain of 1.9 percent.  

The last week of May concluded that gold is on a trajectory for its fourth weekly gain this month. During mid-week, gold hit USD 1,899.11 per ounce, its highest mark since January, against a weakening US dollar and bond yields. As the dollar index and US Treasury yields regained momentum towards the end of the week, gold remained steady at USD 1,896.71 per ounce, gaining 0.8 percent for the week. 

Margaret Yang, a strategist at DailyFX, observed that the recent dip in cryptocurrencies had supported gold’s appeal as a substitute investment asset. As a result, gold is surging ahead with the possibility of hitting past the resistance level of USD 1,900 hereafter. In addition, the rising inflationary pressures will continue to support gold in the long term.

Sources:
1. May EGU Weekly Digests   
2. Gold hovers near 4½-month high on tepid dollar, inflation jitters – The Business Times 
3. Gold firms near 4½-month peak on weaker US dollars, yields – The Business Times 
4. Gold flat as dollar, yields firm ahead of US inflation data – Kitco

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Dear users,

On 28 May 2021, our newly-revamped trading platform was officially introduced after we restructured and upgraded the minimum unit of trading for EGU from 0.01 grams to 1 gram.  

The next phase of our strategic business transformation will be the introduction of a regular ‘Gold Collection’ feature within our app—the whole intention is to normalise gold collection to become an ongoing activity enabling our users to exchange for physical gold bar with their existing EGU when they deemed appropriate. With this feature, you can decide to collect your gold bar anytime, conveniently and effortlessly. 

This new service will be made available to all our users from 9 June 2021 at 12:00am (GMT +8). You can look forward to submitting your request for gold collection from this day onwards. Gold bars are available in 5g, 50g, and 100g for exchange with the equivalent EGU as long as users have sufficient EGU in their account.   

Users should also take note that there will be a premium and processing fee charged for every gold collection—these costs are normally added to spot gold price and charged to cover the cost of manufacturing, minting as well as administration. The costs also vary according to the weight of the gold bar and will be settled in US dollars. 

In preparation for this new feature, system maintenance will take place on 8 June 2021, from 8:00pm to 10:00pm (GMT +8). All trading activities will be suspended during this period. If you have any questions or concerns, please contact our Customer Service at [email protected]

Everest Gold Team