By Francis Ogwo
The prices of gold continued to crash in two weeks straight and worst since November.
At their most recent trading session, gold settled at $1,829.90 an ounce, down by 1.2%.
Although the yellow metal’s recent loss on a weekly basis moderated to just 0.3% on the week, that loss added to the previous week’s plunge of 3.2% — handing gold its worst two weeks in a row since November.
The precious metal was an outlier at the last trading session despite drops seen in U.S bond yields associated with the benchmark 10-year U.S. note, whose resurgence in the previous week had been the catalyst for the U.S dollar comeback.
An expert and the Stephen Innes, Chief Global Market Strategist at Axi, Stephen Innes, in a recent opinion had said, “With short dollar trades tempering over the great US dollar debasement story of 2021, it’s not such an easy glide path for gold to start the year. So, I suspect gold remains tied to the hip of the US dollar fortunes this quarter. The market then morphs into sell the rally mode as the US economy recovers tangentially to the vaccine distributions.”
Experts say there is increasing fear by investors on the lifespan of the ravaging pandemic and its implication on long term investments so there is a natural tilt to monetary and currency investments.
