Gold falls after price correction

0

On 2 February 2021 investors seen a business trend of falling gold prices, after global stock markets saw an increase in point values of stock indices. On Monday, 1 February, this was also the case for the US stock market, where for example NASDAQ index, which is composed mainly of stocks of technology companies, rose by +2.55% points.

In addition, at the beginning of this year, data on the largest decline of gold bought for the purpose of making jewelry in several decades were published. According to analysts, a still relatively high price compared to previous years is due to investors’ fears of the unpredictable economic situation on the financial markets regarding the consequences of restrictive measures taken by individual governments around the world to prevent the spread of Covid-19. Investors’ efforts to protect their financial assets are moving towards so-called safe harbors by investing in gold which is considered to be a relatively safe commodity that maintains a constant financial value, economic correspondents state.

Based on these facts and other available information, investors remain interested in trading gold or holding it, either physically or in an investment-electronic form. On 2 February at 7:46 a, CET, investment gold traded on the Commodities Exchange Center (COMEX) commodity market at US$ 1,855.60 per troy ounce, with a daily decline of -0.28% so far. According to analysts, the price of investment gold has fallen by a total of -2.42% since the beginning of 2021, however in year-to-year comparison investment gold has shown an attractive price increase of +14,76% for the last 52 weeks. The price of gold recorded considerable volatility last year, for example, on 18 March 2020, the price of gold was US$ 1,473.80 per troy ounce and only a few months later, on 6 August, the price of gold on the commodity market at one point reached US$ 2,081.80 per troy ounce.

According to commodity market financial strategists, besides the interest in investment gold, investors are also currently interested in the situation regarding economic incentives of the US government to help the world’s strongest economy. As for the stimuli, hope for more US stimulus packages increased on 1 February after roughly two-hour meeting between US President Joe Biden and a group of ten Republican senators who discussed the scaled-down COVID-19 stimulus package proposed by the group. Although the meeting was “very productive,” Biden said the scaled-down package did not go far enough to resolve the COVID-19 crisis, and insisted on maintaining the US$ 1.9 trillion package he proposed in January, during his inauguration. On Monday, 1 February Democrat lawmakers also filed a US$ 1.9 trillion budget support measure, a move to circumvent Republicans.

LEAVE A REPLY

Please enter your comment!
Please enter your name here