Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 11 to 17 January 2021).
Statistics from the past seven days showed that the EGU prices have risen by less than 1%.
Market News Recap
Gold prices have been turbulent lately with a few highs and lows. Gold experienced a fall of 1.7% to USD 1,816.53 per ounce on 11 January and has hit its lowest price since 2 December 2020. The US 10-year Treasury yield remains firmly above 1%, strengthening the US dollar, which makes gold more expensive for buyers.
However, gold rose rose by 0.2% to USD 1,858.56 per ounce on 13 January as Asian stocks traded lower due to US President Donald Trump’s impeachment after the recent protest at the Capitol. The temporary fall in US Treasury yields and ease in the dollar also contributed to the rise in gold prices. Furthermore, the global economy continues to dampen, with over 91 million global coronavirus infections. As the increase in Covid-19 cases and a new virus strain outweigh the pace of vaccine rollouts, gold is expected to remain bullish in the year 2021.
Gold prices continue to be pressured by the fluctuations of the US Treasury yields and dollar. Supported by a possible US fiscal stimulus and the Federal Reserve’s dovish monetary policy stance, gold rose 0.1% to USD 1,848.75 per ounce on 15 January. However, gold fell more than 1% at USD 1,827.90 per ounce on 16 January as the US dollar climbed higher. The effect of the rising dollar has offset the bullion’s appeal as an inflation hedge after Joe Biden proposed a USD 1.9 trillion stimulus package. Gold could potentially lose more in the short term but investors remain confident with their focus on the US earnings, increased spending, and the Fed’s support for large stimulus.
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While many people know about investing in stocks and bonds, newbie investors tend to overlook alternative investments, such as gold. But gold can actually be a profitable asset and a great way to spread out risk across your investment portfolio through diversification.
Last year’s Covid-19 pandemic has shown just how important it is to hedge yourself against asset risk, as economic conditions can take an unexpected turn. As the world faces uncertainty, gold can act as a “rescue asset” that continues to reap market returns. Here’s how.
As the economy starts to recover from the pandemic’s impact, central banks across the globe may reduce interest rates to stimulate economic growth.
By decreasing interest rates, governments can lower the cost of borrowing. In turn, this encourages higher investment spending and household consumption. The increased spending theoretically promotes economic stabilisation and growth during a recession.
However, when countries lower their interest rates, their currency also depreciates. This stimulates growth for the economy but also causes inflation to occur. Liquid assets, such as cash and stocks, are particularly prone to an erosion of their value in these circumstances.
Although gold is priced in US dollars, its value will not necessarily depreciate along with fiat currency since the former is an entirely different asset class. In fact, if a currency loses value due to inflation, the price of gold will rise with every ounce. For example, when fiat currency depreciates, you would need more fiat money to buy the same amount of gold. Hence, gold will be able to protect itself against decreasing purchasing power if inflation occurs.
For instance, at the end of 2020, the prospects of a large US fiscal stimulus caused the US dollar to drop to its lowest in two years. As a result, gold prices rose. In fact, gold is predicted to remain relatively bullish in 2021.
What all this means is that while your other investments may suffer from a depreciation of US dollars, you can hedge your investments against a weakening US dollar when you invest in gold.
When geopolitical or economic tensions rise, gold prices tend to go up. Economic uncertainties lead to fluctuations in fiat money and interest rates, and in drastic cases, prompt governments to roll out large fiscal stimulus packages or push countries into recessions. These situations cause gold to be more attractive to investors, as it has a negative correlation to the effects of interest rates and the US dollar.
During the Covid-19 pandemic, for example, gold prices remained strong, even as the value of fiat money fell with governments rolling out huge stimulus packages to help bolster the economy. Meanwhile, gold prices also soared amid the political turmoil of the 2020 US presidential elections.
Market downturns occur from time to time, so it’s important to diversify your investment portfolio to make yourself less vulnerable to short-term market volatility. You can do so by investing in gold, which is an asset class of its own and isn’t dependent on the rise and fall of the stock market.
During volatile times, factors like inflation may negatively affect investment returns. Inflation would decrease the value of a dollar over time, which means that assets may be sold at a loss. But when you invest in gold, it can act as a hedge against inflation as it still retains its intrinsic value. Thus, investors’ appetite for gold tends to rise during uncertain times.
As a low-cost investment with relatively low risks, gold is a great asset to hold even if you’re just starting your investment journey.
There are many online trading platforms available for you if you wish to trade gold. If you prefer a convenient platform to trade anytime and anywhere, Everest Gold allows you to buy and sell gold easily through an app. You can check for the latest updates on gold prices on-the-go wherever you are!
Trading gold doesn’t have to be daunting or confusing. You may be hesitant to start if you have to set aside a lot of money to invest in an asset. But you don’t have to worry about putting aside large amounts of money to invest in gold—you can start investing through Everest Gold with just USD 0.60.
Like all other assets, Gold is prone to fluctuations in prices and how the economy is doing. However, it can also act as a safe-haven investment that you can add to your investment portfolio and may bolster the rest of your assets when there is a falling stock market or depreciation of currencies.
Not sure where and how to start? Find out more about why you should trade with Everest Gold here!
Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 1 to 10 January 2021).
Statistics from the past ten days showed that the EGU prices have risen by less than 1% on eight days and have increased by more than 1% on the remaining days.
Market News Recap
Gold rose above USD 1,900 an ounce on 4 January—its highest price in two months since 9 November. With a weaker US dollar and declines in US real yields, gold continues to become more appealing. The weakening of the US dollar eased as the country anticipated the Senate run-off elections in Georgia, which would determine the outcome of the upcoming fiscal stimulus.
However, as the week progressed, nominal bond yields climbed high above 1% and helped the US dollar rebound strongly. Gold fell 0.3% to USD 1,907.66 per ounce on 8 January, since hitting its highest on 9 November at USD 1,945.26 per ounce.
The riots that erupted on Capitol Hill in Washington DC affected gold prices drastically. But now that the US Congress has finalised Joe Biden’s election as the next US president, a surge in US Treasury yields has caused gold to fall, and gold performance is predicted to remain soft in the short term. With higher bond yields, investors are starting to shift demand to other assets. Gold fell 3.6% at USD 1,843.06 per ounce on 9 January, Saturday, falling below the USD 1,900 mark.
Currently, gold has to compete against higher bond yields and will be more greatly affected by short-term events instead of the upcoming US fiscal stimulus. Gold achieved an increase of 25% in 2020 and analysts believe that gold will remain bullish in the longer term as the Democrat win would indicate more fiscal stimulus, which means a weaker dollar and better support for gold in future.
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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 13 days and increased by 1% to 2% across five days. There were 13 days where the gold prices rose beyond 2% with three days edging close to 100% and beyond. This was caused by the market volatility due to the increase in the supply of EGUs and hence, dampened demand.
Market News Recap
Due to the release of COVID-19 vaccines, the prospects of a large US fiscal stimulus and potential economic recovery continued to affect gold prices throughout December. However, US President Donald Trump’s initial reluctance to sign the stimulus bill led to uncertainty, contributing to the US dollar fall of 0.1% against a basket of currencies. This, in turn, caused gold to increase in appeal as an investment. Furthermore, the upcoming Brexit trade deal also boosted gold’s appeal.
On 27 December, Trump finally signed a USD 900 billion coronavirus fiscal stimulus package, which spurred gold prices to increase by 1% to USD 1,895.03 per ounce on 28 December. The US dollar also edged even lower, supporting gold’s appeal to other currency holders. Gold is now starting to rise steadily after facing a loss due to the optimism over the coronavirus vaccine rollouts last month.
DailyFX currency strategist, Ilya Spivak, also warns that although the passing of the US stimulus and a Brexit deal may be good news in supporting gold prices, a resurgent pandemic may drive haven-dollar buying, which may cause gold to be unstable.
Gold increased further towards the end of 2020 as investors looked past the Senate vote delay for the USD 2,000 Covid-19 stimulus checks. Moreover, the prospects of an increased fiscal stimulus caused the US dollar to fall to its lowest in two years, causing gold to rise by 0.7% to USD 1,890.61 per ounce on New Year’s Eve.
With limited availability of vaccines and a new coronavirus strain found in several countries, the economy’s recovery is still in a speculative state, which means gold will remain relatively bullish. Gold has risen by over 24% as of 2020 as it rides on the prospects of large stimulus measures and steady weakening of the US dollar.
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Did you know that millennials prioritise growing their wealth and tend to start investing earlier compared to the older generation? However, 42% are unsure about the best way to go about it.
Investing can feel intimidating if you’ve just started, are clueless about it, or are facing an economic crisis wrought by a pandemic. But it’s not all bad—uncertainties in the economy can also incentivise people to start investing.
For instance, Standard Chartered Bank Singapore noticed a 200% increase in trading volume during the height of the COVID-19 pandemic. Similarly, the Robinhood trading app in the US gained 3 million new users in early 2020, many of whom were millennials.
Overall, though, millennials are still generally overwhelmed by the options and lack knowledge of and experience in investing. Others are afraid of putting their hard-earned money into the stock market. After all, stocks are complicated, volatile, and risky.
But investing is not limited to trading in the stock market or equities and bonds—in fact, there are a myriad of ways to start investing. Consider alternative investments, which are financial assets outside of conventional investments like stocks, bonds and cash.
Alternative investments have been increasing in popularity for a few reasons:
Every type of investment has its unique risks and various considerations. Some are relatively low risk and allow you to start with small amounts of capital, but others are the opposite. It’s crucial to understand how each asset works and whether or not it suits your objectives.
Here are some alternative investments and factors for you to consider when embarking on your journey as a millennial investor.
Many people place a high value on gold because it’s seen as a hedge against inflation and a safe-haven investment when other forms of currencies are fluctuating.
In today’s world, gold isn’t just about owning it physically—you can trade it through funds on a stock exchange or through trading apps.
Short to long term
Gold can be an excellent short-term investment to turn profits quickly, but investing in gold in the long term can also be lucrative. Ultimately, it depends on your financial goals and how much money you’re willing to invest.
Gold prices are largely dependent on sociopolitical issues that affect the economy, especially that of the USA. As gold is priced in US dollars, gold prices tend to rise when the US dollar falls.
You don’t have to put in large amounts of money when investing in gold. You can start small—in fact, trading platforms like Everest Gold provide ultra-low investment opportunities with a threshold of 0.01grams, which is about USD 0.60. There are no extra fees to pay, so you can withdraw cash from your account and enjoy the full profit.
The risk of trading gold is relatively low. The value of gold is dependent on public exchanges and determined by demand and supply.
Gold prices may fluctuate at times but the metal is still generally valued at a high price, and many predict that it will continue to climb in the future. Gold may rise during an economic crisis but ease when the economy recovers.
Online trading platforms are a great way to start. Everest Gold allows you to buy and sell gold online conveniently through their app—you can trade on-the-go at any time. You can even check gold prices with their live gold chart and monitor your investments in real-time.
Gold is a great way to start your investment journey as it is a low-cost investment with relatively low risks. You don’t have to worry about needing a high upfront capital to start, and it’s a way to gain knowledge of how investing works.
Furthermore, gold is also an entirely different asset class, and it’s suitable for diversification of your investment portfolio when other asset classes don’t fare well.
Exchange-Traded Funds (ETFs) are a basket of securities that trade on stock exchanges. An ETF reflects the performance index of the top companies listed in the stock market.
For example, if you’re planning to invest in a local ETF, the index will be according to The Straits Times Index (STI) ETF, which is a list of 30 biggest companies on the Singapore Exchange. After observing the list of companies, you can decide to invest in an ETF by buying units in the ETF, and gain investment returns if the index is higher than what you invested.
Medium to long term
It may be suitable for short-term trading, depending on your financial objectives. Still, it would be better to invest your money in a mix of ETFs for a more extended period to grow your portfolio and reap more benefits.
Investing in ETFs is an excellent way to start your investment journey because of the low cost and the ability to buy and sell them on the stock market.
You don’t need a lot of money to invest in ETFs as you don’t have to pay a fund manager to buy and sell on your behalf. But if you do prefer hiring a fund manager to manage your ETFs, you would have to pay management fees.
When you trade ETFs, brokers often charge a commission for each trade. But when investing in ETFs, investors only have to perform one transaction to buy and another to sell, which means fewer broker commissions and hence, lower purchasing cost.
The risk of trading ETFs is relatively low. You’re able to diversify your investment portfolio, which means that you can spread your risk across various companies by investing in a mix of ETFs. By doing so, you reduce your risk of losses from cyclical downturns in a specific sector.
Every quarter, STI will review the companies listed, so you can assess investability every few months.
You can trade ETFs online via brokerage platforms. Remember to find out the fees you have to pay to the broker before starting your investment.
ETF investments are low-cost capital investment products that you can start with if you’re relatively new to investing. You don’t need a lot of capital, but you should also check if there is minimum funding required.
A Real Estate Investment Trust (REIT) owns and operates a portfolio of properties, and rents them out to interested buyers. REITs pool together investors’ money to buy different properties.
When a REIT rents out properties, the rental income is redistributed and paid out to investors who have invested their money in it.
As they are dependent on interest rates, REIT prices may be unstable in the short term with interest rate fluctuations. It is much better to invest in REITs for extended periods.
Relatively low ($300 to $5,000)
REITs are a relatively low-cost investment product compared to buying an entire property.
Investing in a REIT is low risk and offers relatively high dividends yield. It’s possible to yield 5% to 8% a year in dividends, which will be paid out quarterly or every six months. The law requires REITs to payout 90% of their earnings each year as distribution to unitholders.
You can start investing in REITs through online trading platforms. Before you start, you will need to open an individual Central Depository (CDP) account with Singapore Stock Exchange (SGX) and set up a trading account with a brokerage firm.
Investing in a REIT gives you exposure to diversified property assets and requires a relatively small capital. It can provide passive income if traded well and without you worrying about monitoring the market every day. In contrast, investing in real estate involves purchasing a property to earn a return through a resale or rental income.
It would be tough to make any returns if you invest in a property in the short term. Usually, people rent out a property to make passive income because the returns are slower and spread out over some time.
Very high (~$200,000 to $2,000,000, depending on the property)
If you’ve just started earning an income or are still building up your savings, it would be difficult to invest in a property. Aside from the mortgage payments, you’ll need to invest time and money in maintenance and renovation, as well as in managing tenants if you’re planning to lease out your property.
Investing in real estate involves medium to high risks, depending on the type of property you’re investing in. The location and age of the property are some factors that would affect your investment.
You can look up property listings on different websites. You may want to hire a real estate agent to help you out, but you will have to pay a fee.
You should invest in property only if you have enough savings to cover the downpayment and can pay the mortgage while still being able to set aside some savings.
However, the risk of not getting any returns once you resell your property is high. If the property you’ve invested in depreciates over time, you risk facing a loss on the sale. With that said, you don’t necessarily have to invest locally—look overseas for an affordable house (e.g. Johor Bahru) is also an option for many young Singaporeans.
On the other hand, your property could also end up appreciating multiple times. If you have the financial stability to wait for a long time before reselling the property then this investment could work for you.
Property investment is also desirable if you’re sharing the mortgage with your partner—splitting the cost of purchasing a property as a couple would make the investment more feasible.
Cryptocurrency is a digital asset with transactions secured using cryptography. It is a relatively new form of investment that has gained traction over the past few years. Bitcoin is the world’s first decentralised cryptocurrency.
Cryptocurrency investment means trading on its price movements through a Contract For Differences trading account or buying and selling the coins through an exchange.
Cryptocurrency is unpredictable and volatile, but its value has risen over the years. People may not want to invest in the long term because it’s possible to face huge losses. But if you have a high appetite for risk, you could possibly reap windfalls, too.
Low to high
There is no definite amount of capital you need to start investing in cryptocurrency. It can range from a few dollars to many thousands, depending on your financial situation and goals. Moreover, the value of cryptocurrency in relation to fiat money fluctuates frequently.
Investing in cryptocurrency involves high risks. It’s also highly possible for you to be a victim of cybertheft and money laundering. However, markets like Singapore and Hong Kong have implemented regulations for cryptocurrency trading to ensure investability and reduce the occurrence of cybercrime.
You can trade cryptocurrencies like Bitcoin through online trading platforms. Singapore’s DBS Bank is looking to launch the DBS Digital Exchange, which will allow cryptocurrency to be traded against fiat currencies.
If you’re new to investing, dabbling in cryptocurrency investments may not be the best option as it is difficult to understand. In addition, cryptocurrency is a speculative asset which means it has high uncertainties.
However, the high liquidity in cryptocurrency can also be an advantage over other types of investments if you’re looking for a short-term profit. You don’t need a broker to trade because you can simply buy and sell Bitcoin independently. If you’re an extremely tech-savvy millennial who understands the mechanics of trading cryptocurrencies, it’s possible to reap the benefits of it. Just keep in mind that investing in cryptocurrencies is like taking a gamble—it’s a high-risk, high reward portfolio.
Each asset comes with pros and cons, so never pour money into one without doing proper research and without assessing your current financial state and goals. Understand the risks involved, the capital required, and the time commitment needed for each type of alternative investment.
Keep in mind that all investments are at least a bit of a gamble, as no one can entirely predict the future. The best route is to consider if the risk inherent in each type of investment matches with your financial capacity and risk appetite, and whether it will help you to achieve your financial goals.
Beat the Gold Rush now! Seize this opportunity and be one of first 10 users to redeem your very own 100g gold bar with 10,000 EGUs within our app. In addition, you will also be rewarded with SGD 200 CapitaVouchers*.
1 January 2021, 1200hrs to 14 January 2021, 1200hrs (GMT+8)
Do note that the event will officially close once the 10 x 100 grams of PAMP gold bars have been fully redeemed.
Who can take part?
All verified Everest Gold users (Worldwide)
How to take part?
1. Trade and accumulate 10,000 EGUs.
2. Tap on “Beat the Gold Rush” banner.
3. Click “Redeem Now” to submit your request.
Terms and conditions apply. Please click here for more information.
Everest Gold Team
Round 4 of our Trading Competition has officially started.
It’s time to beat the rest, and be the best! Over USD 3,000 worth of reward points to be won!
All the reward points can be exchanged for EGUs during our Gold Subscription Events and can be traded immediately in-app.
23 December 2020, 0000hrs to 29 December 2020, 2359hrs (GMT+8)
For more information about the trading competition, please click here.
Everest Gold Team
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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Digital platforms and digital assets are making investing more enticing and affordable for a new breed of investors. Think millennials (people born between 1981 and 1996), senior-year university students, and professionals in their 20s and 30s who have never tried their hand at investing because they didn’t have enough capital or couldn’t understand how to even begin.
The availability of fintech tools, though, has helped demystify investments and lower the barrier to entry for these new investors.
So it’s no surprise that as fintech boomed, the finance app industry also saw an increase in adoption—from 16% in 2015 to 64% in 2019. In almost the same period—from 2015 to 2020—Google searches for the term “investment app” have more than tripled.
Meanwhile, as Covid-19 wreaked havoc on economies and cast a shadow on the near future, young people began using investment apps to try investing for the first time in their lives.
As a result of such apps’ popularity and potential, fintechs that make investment accessible are gaining more attention from venture capital firms and investors. Robinhood, the trading platform that amassed over three million new users—many of them first-time investors—amid the pandemic, is even planning an IPO.
Thanks to tech, investment opportunities are no longer limited to those who speak the language of stocks
The rise of fintech, along with this industry’s mission to increase financial inclusion among its markets, has paved the way for more people to become active investors. Fintech platforms are able to meet the needs and desires of this new generation of investors.
Apps provide investors with financial and investment advice
Apps, online advisors, robo-advisors, and computer-generated recommendations can provide financial and investment advice to people who don’t have access to human financial advisors or investment training.
AI also plays a role in helping people make investment decisions. Peer-to-peer (P2P) lending platforms, for example, provide the option to have a certain amount of capital distributed among different loans using AI, based on the user’s risk profile and preferences.
There’s also no shortage of financial resources and influencers out there for a new breed of investors who seek more relatable investment advice. Singapore alone has dozens of blogs related to various areas of investment.
Many new investment platforms require low upfront capital
Assets that traditionally require a high minimum investment amount are now digitalised, allowing for lower barriers to entry. It’s now possible to buy as little as 0.01 grams of gold (approximately USD 0.60) through apps like Everest Gold, which offers digital gold units that are 100% backed by physical gold. While buying such a small amount of metal may seem physically impractical, it’s perfectly acceptable on a digital gold trading platform.
Investors can now easily access alternative and digitalised assets
For the new investor who gets intimidated by the language of stock trading, alternative investments are an attractive option. Alternative investments allow people to choose assets that they understand, care about, or are interested in. These can be anything from property to startup ventures.
By their digital nature, assets like cryptocurrency and digitalised metals appeal to certain groups of new investors, such as millennials.
Fintech investment platforms remove geographical barriers
Through apps, people can make investments that might not be easily accessible in their own country. Investment platforms like Everest Gold allow people from around the world to sign up and invest as long as they are able to authenticate their identity on the app.
Investment apps offer a convenient, digital-first experience
Digital platforms make it easier to begin investing— think stock investment apps, gold trading platforms, and online property portals that let you invest in overseas real estate.
One thing these platforms have in common is a convenient, fully digital sign-up and transaction process. There’s no need to visit a brick-and-mortar branch, wait in line, present physical documents, sign papers, and wait for days or weeks for feedback. Transactions can be processed instantly or within 24 hours, and users can make investments at any time of the day or night.
And it’s getting even easier. More fintechs are building application programming interfaces (APIs) that allow platforms to work with one another, making the online investment experience even more seamless.
Investment comes with risks. Here are some controls that fintechs are implementing
Some worry that allowing people with low levels of investment literacy to invest in assets would lead to personal financial disasters. A related concern is that malicious actors might take advantage of these newbie investors. Apps and investors might also encourage people to make risky, short-term investments and trades instead of investing for the long term.
Thankfully, there are controls in place to protect customers.
Regulation and registration
Users must make sure the platform they’re using to invest is regulated by the relevant authorities in the country where it’s registered. For example, Singapore-based Everest Gold is regulated by the Singapore Ministry of Law and is a registered dealer under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019.
These regulators require financial institutions to assess the risks customers present by implementing sufficient Know-Your-Customer (KYC) processes.
Everest Gold has a stringent KYC verification process that users must pass before they can be qualified to trade on their digital platform. This involves verifying a user’s identity through a liveness test, creating an encrypted 3D face ID, and obtaining a copy of a valid international ID card or document, among other steps.
Some apps build a risk profile for each user when they sign up on the platform. This profile takes into account factors like the user’s income, risk appetite, and investment goals. The user would then be able to invest only in assets that match their risk profile.
Many platforms incorporate knowledge centres, tutorials, advisory, or news updates into their apps and services. They share real-time insights and live updates on the status of investments and on price fluctuations.
Video tutorials for investors of digitalised gold
This encourages users to make informed decisions. For example, an investor in digitalised gold would want to receive up-to-date information about gold prices and market sentiments. It also helps when platforms share video tutorials on investing both through their app and on social media.
New investment tools for a new breed of investors
Tech is enabling a new breed of investors, helping them overcome the challenges of investing and allowing them to make choices based on their lifestyle and values.
Review of EGU Price for the Past Week
The following is the daily gold price change of Everest Gold (from 7 December 2020 to 13 December 2020).
Market News Recap
Speculation over the US fiscal stimulus continues, with the US Senate expected to decide on a stopgap measure to keep the government running. Investors remain hopeful about a more considerable stimulus measure as gold will gain from the prospects of inflation. Although the size of the package is still unclear, gold rose 0.2% to USD 1,867.66 per ounce earlier last week.
Gold prices also eased slightly last week due to COVID-19 vaccine developments. However, optimism over the vaccine rollout has been tempered after two people in Britain suffered adverse reactions, causing the country’s regulator to caution against the use of Pfizer’s coronavirus vaccine for people with a history of severe allergic reactions.
Overall, gold is predicted to remain bullish as governments persist in potential implementation of monetary and fiscal policies. Analysts forecast gold prices to rise to USD 2,100 per ounce by 2021 due to support from a weakened US dollar and a low likelihood of a bear market.
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