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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