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Gold wins back last week's losses

Gold wins back last week's losses

Gold has won back all the losses it suffered last week. It climbed to a 2-week high and confidently moved towards $ 1,800.

The main reasons are the sharp decline in the USD index and 10-year bond yields, which fell by 0.3% and 1.61%, respectively.

Back in April, gold sank 0.6%, while silver dipped by 0.8%. But yesterday, both rose by 1.4% and 4.2%, respectively.

As a result, gold climbed to $ 24.10, while silver jumped to $ 1.09.

The yellow metal was also able to reach $ 1,798.90, but the level it closed at was $ 1,791.80.

Silver also showed an impressive performance, ending the session at $ 26.96, its highest level since February.

Analysts believe that the market grew because of the statements from US Treasury Secretary Janet Yellen. She assured everyone that the government has all the tools to combat inflation.

Another factor could be the growing demand for safe-haven assets, which is mainly due to the tense epidemiological situation in India and other countries.

There is also an opinion that the collapse last week renewed the interest of investors.

But Michael Armbruster of Altavest that gold will remain in a bear believes market, and that bullish traders will have a hard time pushing the price higher than $ 1,800 because of US Treasury yields.

Armbraster said the yellow metal will increase only if the US passes Biden's new spending plan.

And at the time of writing, both gold and silver have dipped, falling by 0.1% and 0.5%, respectively. Gold is now trading at $ 1,789.40, while silver costs $ 26.74.

The main reason is the 0.2% increase in the USD index.

Yesterday's statements from the Federal Reserve may also be the cause, as Fed Chairman Jerome Powell said there is a significant improvement in the economic outlook because of COVID-19 vaccinations and massive fiscal stimulus.

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Gold wins back last week's losses

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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