This website uses cookies to ensure you get the best experience on our website
Join us on Telegram for FREE daily market updates!

Blog

Date:
17th Feb 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Gold's Luster Fading, Bulls Trapped

Gold traders are dodging bullets. Bears are quickly taking back what's theirs, reversing this week's gains, trapping optimistic bulls. Analysts are, nonetheless, concerned about the valuation of the stock market and the risk of inflation. Jerome Powell and Janet Yellen said the financial scene would remain accommodative with low-interest rates and bond purchases. In the meantime, rampant USD and rising bond yields combine to unwind progress made in the last few days.


Details: 

Gold is a safe-haven. However, the general sentiment among traders is that the global economy is in recovery, with investors in a risk-off mode seeking to invest in yield-bearing instruments. Accordingly, the outflow from the bullion is pulling the ladder from beneath buyers. A stronger USD also means gold bulls are exiting. Therefore, this may exacerbate gold's prospects in the immediate term since losses may be deeper than Nov 2020 losses.


Impact on Gold: 

Bearish. The USDX is firm as optimism around revival in the global economy pushes the USD higher. The resulting demand for U.S. Dollars means a reversal of gold gains and a possibility of even lower lows in the coming days.


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.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020