Happy Lunar New Year to All Our Loyal Customers Who Celebrated This Past Week! Wishing You All a Prosperous and Healthy New Year!

Welcome back to another Instant Update! Last week Gold prices were volatile to say the very least. Early in the week, Gold prices spiked up to $1840 (USD/Oz), an area that has been acting as a major resistance over recent months. Through technicals, the yellow metal is showing rejection of that area but has tended to remain stable at that mark. However, when fundamentals come into play it becomes a whole different story. As a result of Gold shooting up, Silver also shot up with prices peaking at $27.5 (USD/Oz). Throughout the first half of the week, prices remained fairly stable and actually broke through the $1840 (USD/Oz) resistance peaking at 1850 (USD/Oz) on Wednesday. Prices came back down to retest the $1840 (USD/Oz) level as US Stock markets brought in a lot of selling volume on precious metals with their rallies. The week was somewhat shorter for some traders as the markets closed early due to the Lunar New Year. Even with less liquidity in the markets Gold prices chose volatility over stability. Prices fell at the end of the week resulting from economic data from the US. Many important official reports were released, a notable one being unemployment claims. Although the claims were still higher than expected, the week-over-week claim showed that there were fewer claims. Long Term the week over week claim holds a higher value which is why prices fell in anticipation of a stronger economy. As the US economy begins to improve, a fall in Gold and Silver prices is inevitable. However, when we take into account Biden’s $1.9 Trillion stimulus plan, we can expect high levels of inflation. Fundamentally Gold prices will rise up.
To start the week Gold prices fluctuated around a key level of $1830 – $1840 (USD/Oz) and remained fairly stable throughout. Gold closed at $1838.07 (USD/Oz) early in the week.

Midweek, we saw a spike in prices after Federal Reserve Chair, Jerome Powell spoke and tried to downplay Inflation fears in the economy in an attempt to keep prices over the $1850 (USD/Oz) level. Being unable to do so, Gold prices ended up dropping to retest the $1840 area. Midweek, Gold closed at $1842.25 (USD/Oz).

As the week came to an end, US economic data was released and showed optimism with the economy recovering as there were fewer unemployment claims from the previous report. This caused prices to stumble. Gold ended the week closing at $1824.60 (USD/Oz).