Last week, GOLDUD almost showed no significant movement, as US treasury yield played major role on gold prices movement.
Firstly, in the first half of the week, the gold prices move lower as the US treasury yield rose affected by the strong potential economic recovery by the planned of US massive stimulus and vaccine rolled out across the globe. Both sentiment triggered the high expectation of immediate economic recovery, thus push the treasury yield up and the gold prices moved lowered.
Secondly, on the second half of the week, the gold prices move higher after hitting the lowest level since mid-2020. The rise was caused by the investor who did the bottom fishing on the gold price as investors fell that the last week’s gold prices were cheap enough.
Although, the gold prices move away from mid-2020 lowest level, the gold prices ended the week by minus 0.64% and brought the concern for further rise on treasury yield will push the inflation and supporting the gold prices as a hedging asset.
No Major Data, Only Powell on Watch
This week, US major data were not going to release but with investors around globe may pay attention on Powell testimony tonight. The statement may not bring anything new, but any optimism or pessimism over the current economic or future economic condition given the potential massive stimulus and the rolled out of vaccines, may cause the gold prices to move wildly.