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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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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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 23 days and increased between 1% to 3% across seven days. EGU prices hit the highest, at above 2% on 1 April.  

Market News Recap
Gold prices had a strong start in April, gaining 1.2 percent in the first week of the month. Although signals of a US economic recovery—buoyed by pandemic relief stimulus cheques and increased Covid-19 vaccinations—put pressure on gold prices, this was balanced by softening Treasury yields and a lower US dollar.  

Gold continued to rally in the second week of April as bond yields fell and the US dollar weakened further. As a result, gold prices broke above the resistance level of USD 1,750, setting a new highest mark since February.

Gold remained bullish for the first half of the following week. Bond yields dropped lower than 1.6 percent, causing gold prices to rise to USD 1,793.32 per ounce. However, the trend reversed towards the end of the week as robust US economic data pushed bond yields higher. As a result, gold prices dropped 0.8 percent to USD 1,770.04 per ounce.    

In the last week of April, gold prices fluctuated together with the rise and fall of the US dollar and bond yields. During mid-week, US Treasury yields increased and hit their highest mark since mid-April, resulting in a drop in gold prices and a higher opportunity cost for gold.

On the other hand, the US Federal Reserve promised to keep interest rates near zero to boost economic recovery on Thursday, leading to a gold price increase of 0.2 percent to USD 1,784.94 per ounce. In addition, US President Joe Biden’s plans for a USD 1.8 trillion stimulus package favours gold as gold is viewed as a hedge against inflation.

TD Securities head of global strategy, Bart Melek, says, “As inflation moves higher, it is unlikely that we’ll see a big pick up in yields, which is good for gold.” He explained that gold is in a good position to break above USD 1,800 this year. As commodity prices continue rising, investors are protecting themselves against possible inflation, which would, in turn, support gold prices.

Sources:
1. April EGU Weekly Digests   
2. Gold falls as US Treasure yields firms; all eyes on Fed rate decision – The Business Times 
3. Gold gains after US Fed maintains accommodative stance – The Business Times 
4. Gold price rally in May? Chances are tied to inflation expectations as US data runs hot – analysts – 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 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 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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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 6% across ten days. There was a spike in the EGU price on 19 January where the gold prices rose beyond 13%. We attributed the result to market volatility caused by the announcement of Trading Competition Round 5, where users were likely to buy and sell their EGUs in preparation for it, and hence, creating a huge price change. 

Market News Recap
Gold got off to a great start to the new year when it rose above USD 1,900 on 4 January on the back of a weaker US dollar and declining real yields. As the month progressed, gold faced pressure from an increase in yields and a recovering dollar, but analysts still expect it to remain relatively bullish in the long term. 

Earlier in the month, gold prices were supported by expectations of a significant US fiscal stimulus and the Fed’s support for increased spending. However, as the Republicans are rooting for a smaller package, Joe Biden’s USD 1.9 trillion pandemic relief proposal may cause a fall in gold’s appeal.   

The US dollar fell drastically from a one-week high on 26 January, which raised gold’s appeal for other currency holders. On the same day, the US 10-year Treasury yields hit a near three-week low, which limited the losses for gold. Gold prices fell by 0.2% to USD 1,851.26 per ounce. 

In addition, the Feds’ Federal Open Market Committee (FMOC) meeting did not announce any new monetary stimulus measures, contributing to the decline of gold prices in the last week of January.  

Despite this downward trend, the World Gold Council (WGC) revealed that global gold demand would recover in 2021, with China’s economic recovery supporting gold’s appeal. 

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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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