Gold is consolidating after growth
Early in the third week of April, Gold is consolidating not far from $1737 per troy ounce. It’s not bad especially given the March prices and investor’s attitude towards the precious metal.
From the fundamental point of view, the current market conditions are rather neutral for Gold. The physical demand is low: major economies are in no hurry to completely remove lockdowns and quarantine restrictions although they allow their citizens to have freedom of movement, which, in its turn, has a positive effect on consumer demand. In the future, when social restrictions are finally removed, consumer interest in goods made of Gold will improve. As for the influence of the USD rate, which is oppositely correlating to the Gold price, everything is quite calm right now. EUR/USD is trading at 1.1890 and looking rather inactive in anticipation of new catalysts. Read more...
XAU/USD: Bond yield presses gold price
Gold prices fell on Friday, partly due to an increase in bond yields. That encouraged the Dollar to appreciate, plus this could be a sell-off for traders and investors who bought in early April. As for the stock market itself, the S&P 500 and Dow Jones continued to hit new all-time highs. As the new round of stimulus continues to boost investor confidence that the US economy will be able to grow ahead of the Eurozone and other countries, there is still a risk from the Covid-19 epidemic, although infection rates continue to decline as vaccination rates accelerate.
The fall in the gold price on Friday can be explained from a technical perspective. It can be seen that in the Day time frame, the gold price could not pass the MA50 resistance at the 1,760 zones, and the low zone from the end of 2020 (30 November). A break of 1,745 was also not sustained as the price closed the week at 1,743. Read more...
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Gold price analysis: The bulls takes place at $1740/oz
The DXY - US Dollar Index makes an adjustment which puts pressure on gold in the first session of the week. Right now, it is moving around 91,98 and 92,4.
There is a lot of news about social economics which makes gold moves slower these days.
For the bears, many ETF gold funds like SPDR Gold, iShare Gold, Gold Bullion, Goldman Sachs ETF,... continue to sell in the first quarter of 2021, which makes investors feel anxious. Moreover, there are many significant policies coming from Europe, the USA, China, Japan which on Covid-19 vaccinated activities and on national lockdown. These things make a positive consequence for the economy around the world. Read more...
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