Gold prices are about to record their worst weekly loss in 2021

Mohammed Abdelkhalik
February 18, 2021
gold prices

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Gold Prices Outlook – 19th February 2021

Gold prices retreated during trading today, in the seventh consecutive daily loss, to record their lowest levels in more than seven months, and prices are still in the process of recording a new weekly loss, which is the worst during the current year 2021, this decline is due to slowing levels of investment demand on The metal as a safe haven, especially in light of the widespread rise in US long-term bond yields.

At 09:15 GMT, the spot price of gold was down about 0.2% to trade around 1771.16 US dollars an ounce, compared to the opening level at 1774.60 dollars, and early in the session, it reached the highest price at 1775.00 dollars an ounce.

Gold also declined in US futures, by 0.3%, recording a level of $ 1773.50 an ounce.

XAUUSD Outlook - 18th February 2021

Gold prices continue to decline

The yellow metal ended Thursday’s session, down 0.1% in the sixth consecutive daily loss, in the longest series of daily losses since November 2011.

Over the course of this week’s transactions, which officially ends at today’s settlement, gold prices are still retreating so far by about 3.5%, in the process of recording a new weekly loss and the worst weekly performance since the beginning of this year, as prices have been affected recently by the widespread rise in government treasury bond returns in the United States.

Gold did not receive support from an unexpected rise in US jobless claims despite the decrease in new cases of Covid-19 during the past week.

Among the other precious metals, silver fell by 0.5% during spot transactions to trade around 26.87 US dollars per ounce, and this week it recorded an average loss of 1.8%, which is the worst weekly performance since mid-January.

Palladium fell 0.3% to $ 2345.07, and platinum also lost about 1.3% to $ 1258.52, but it is heading towards a new weekly gain, which is the third in a row.

The high yield of US Treasury bonds

The yield of 10-year Treasury bonds issued by the US government today, Friday, rose by about 1.0% to reach 1.311% in the second consecutive daily gain, to approach again its highest level since February 2020, which touched yesterday at 1.331%, and the yield ended last week’s transactions at 1.215%.

The injection of more financial and monetary stimulus in the country, amid the state of optimism again in the markets about a rapid recovery of the global economy from the Coronavirus crisis after expanding Vaccination campaigns in various parts of the world.

On the basis of developments related to the Corona pandemic, we have recently followed the recommendation of the World Health Organization (WHO) committee to use the combined vaccine between Astra-Zenica and the University of Oxford in Britain for adults over the age of 18.

According to the latest official figures issued by the organization, the number of people infected with the coronavirus has reached more than 109.56 million, and the number of deaths reached 2,424,060 people in 223 countries.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.