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Date:
16th Mar 2021
Author:
Dalmas Ngetich, for AltumFx News Team

Gold Prices Under Pressure, Falls on Stronger USD

The yellow metal, on Mar 16, fell on a firmer USD, slowing down after encouraging builds of the past week. Although still struggling at around a 10-month low, gold prices face significant headwinds in the face of improving the U.S. and global economies. Notably, the coronavirus vaccines' success and rising bond yields may pull the ladder from below gold bugs, forcing prices lower.


Details: 

Gold prices rely on several factors. Most importantly, the state of the economy being a safe-haven remains on investors' radar. Therefore, while effects are conflicting as the U.S. intervenes through direct $1.4k checks, the upside would be capped due to improving economic conditions, rising bond yields, and better administration of the coronavirus vaccine. Overly, the $1.9 trillion COVID-19 relief status backs analysts' economic outlook. Accordingly, gold as a safe-haven will struggle as long as this outlook improves.


Impact on gold prices: 

Neutral to bearish. Gold prices will likely see-saw, proving more opportunities for derivatives and CFD crypto traders to clip on volatility. Although retail sales came in lower than expected, the FED's FOMC statement and comments on inflations could move gold prices.


More market news over on our Blog


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