This website uses cookies to ensure you get the best experience on our website


03rd Feb 2021
CryptoAltum News Team

Gold Luster Fading, Shrinks as Bond Yield Rises

Gold prices are tracking lower in a counter-trend with the USD, trading at a seven-week high. The retracement of gold prices is when bond yields are rising, and the US stock market is vibrant, reversing last week's sharp losses. Overly, a strengthening greenback could see commodities and precious metals priced in USD, despite the World Gold Council expecting a revival in the yellow metal demand in 2021.


Gold and USD have an inverse relationship, and the former will contract as the latter strengthen. Presently, a soaring greenback backed by investor confidence and, among other things rising bond yields forcing capital outflow from non-interesting bearing gold translates to lower prices for the yellow metal. This may be the situation in Q1 2021 following a World Gold Council report confirming the plunge in demand for the yellow metal in 2020. Although they are optimistic--saying demand will pick up in the medium term, hopes of a faster global economic recovery, coronavirus infection rate flattening, and gains in the stock market are USD's tailwinds, pushing gold prices lower.

Impact on Gold: 

Bearish. The yellow metal price forecast remains bearish as capital is being withdrawn to a relatively risky stock market and the bond market backed by the US government's sovereignty. With a strong USD, gold losses may be protracted in the days ahead. 

More market news over on our Blog

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

CryptoAltum does not accept any clients under the age of 18. 
  • Copyright Techcraft Ltd (CryptoAltum) 2020