Gold Steadies While COVID Cases Climb
APMEX
7/19/2021 11:01:27 AM
Gold Steadies While COVID Cases Rise
As the week began, silver and gold prices encountered some initial headwinds, leading to a Monday morning dip. With rising coronavirus cases, investors favored the dollar as a haven, bolstering the greenback and sending gold to a one-week low of $1,795. Silver briefly touched the $25.05 mark.
Both metals bounced amid a sell-off in stock futures, fueled by inflation and coronavirus concerns on behalf of investors. Dow Jones futures sank by 1.2%, signaling an opening slide for U.S. equities. As expected, stocks took a dive. The Dow dropped 2.2%, while the S&P fell by almost 2%. Currently gold is at $1,813, while silver is close to $25.30 an ounce.
The sell-off continues in the crypto market as many continue to favor less risky assets. Bitcoin is down nearly 2% and is near 30,000. Crypto crackdowns abroad have also dented the appeal for these assets, as the overall market cap of digital currencies continues to decline.
Fearing that rising coronavirus cases may impede economic growth and encourage accommodative monetary policy, many investors have continued to adjust their risk appetite. This posture has also affected yields, as today the 10-year Treasury yield dropped to five-month lows.
It’s a relatively light week in terms of scheduled economic events. U.S. housing data is set to be released on Tuesday afternoon. The European Central Bank, (ECB) is scheduled to release a policy decision on Thursday. At this point, most experts are forecasting that the bank will maintain its loose monetary policy. Existing home sales data for June is scheduled to be released on Thursday as well.
Manufacturing and services PMIs are to be released on Friday. There is a forecasted rise in services, but a decline is predicted for manufacturing. If the decline in risk appetite persists throughout the week, it seems likely that bullion will compete with other assets such as currencies and bonds for the preferred safe-haven status. Major movements in these markets could affect the price of gold and silver.
APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
