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Blog

Date:
03rd Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Gold inches Higher, USDX Cool Off

After last week's corrective losses, gold prices were firmer during the N.Y. session, slightly recovering in acorrective bounce. The yellow metal is nonetheless struggling at around a nine-month low, struggling to tame rampant bears who are sensing weakness. Increasingly, amid hopes of stronger economic recovery and resumption to normal, the opportunity cost of holding the low-interest-bearing gold continues to fall by the day. Consequently, investors are hopping on to higher performing assets.


Details:

Gold is struggling to stay afloat after last week's rout. Technical candlestick arrangement favor sellers. They are adding to their gold shorts, heaping pressure on the yellow metal. Unless otherwise there are deflation shocks, inflation rises too quickly, or the U.S. announces the end of their money printing, gold will remain under pressure. FED officials are confident that the U.S. economy requires support now that inflation talks are exaggerated. It may take longer for uniform growth across different states. Also, the U.S. full employment will be back to pre-coronavirus levels in months, not weeks.


Impact on Gold prices:

Bearish. Economic conditions favor sellers, and it may take a rapid shift in critical variables before gold resumes last year's uptrend. After last week's sharp losses, a mini-rally is normal but may not last considering the strong wave of sell pressure, headwinds for optimistic gold bugs.


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