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Adesina Olumide

At mid-week’s trading session, the precious metal was trading at around $1,680 an ounce, posting losses of about 0.3% while the U.S dollar, which usually trades inversely to the yellow metal bounced higher.

Global investors are currently betting on the high prospects for a relatively faster US economic recovery though recent dampening reports on COVID-19 eruptions at many parts of Western Europe, keeping gold bugs on their toes as they battle staying above $1,650 price levels in the near term.

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In the bond market, the yellow metals most powerful nemesis the U.S. 10-year Treasury yield surged as high as 1.776% yesterday, its highest level since Jan. 22, thereby keeping gold bugs arbitrarily on the bench.

With US yields surging to new highs and global equities still holding up, and most importantly the increased buying pressure on Bitcoin might push the yellow metal below $1,600 support levels, amid quantitative easing programs enacted by global central banks that often support precious metal prices.

Gold bears took hold of the precious metal market on recent upsides in the greenback’s value surging to four-month tops and remained well supported by the upbeat outlook for the world’s largest economy.

Though metal experts forestall in the near term, gold prices might likely benefit from considerable sell-offs in global equities and for gold to be a little better supported around the $1680-1660 area, which marks the month and year’s lows.

Gold bulls face more headwinds on reports that reveal the International Monetary Fund will also raise its forecast for global economic growth 2021 and next year from the 3.5% contraction recorded last year, managing director Kristalina Georgieva disclosed yesterday.

For a look at all of today’s economic events, check out our economic calendar.
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