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Gold Endures Consistent Selling

Published on Jan 18, 2021 17:04

COMEX Gold saw consistent selling pressure last week after recovering from a near three week low as firm US dollar and rising US Treasury yields weighed on the metal. COMEX Gold eyed outlook on US interest rates after the benchmark 10 year US yields hit one year high of 1.15%. Rising rates could keep Gold under check over coming quarters. The COMEX Gold futures slipped near a one week low under $1930 per ounce. The US dollar index also edged up around two week high of 90.80. Meanwhile, the the World Gold Council (WGC) came up with an outlook for Gold for 2021. It stated that the COVID-19 pandemic raised uncertainty by compounding existing risks and creating new ones. But by the end of last year, investors were optimistic that the worst was over. WGC noted that investors will likely see the low interest rate environment as an opportunity to add risk assets in the hope that economic recovery is on the immediate horizon. That said, investors will likely also be navigating potential portfolio risks including ballooning budget deficits, inflationary pressures, market corrections amid already high equity valuations, noted the WGC.

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