Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold looks bullish with new Covid-19 risk to global economy

Gold looks bullish with new Covid-19 risk to global economy

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Chhea Chhayheng.

Gold looks bullish with new Covid-19 risk to global economy

The price of gold dramatically slipped from $1,866 per ounce on November 18, to $1,788 on November 23.

The drop came as the US President Joe Biden announced his intent to nominate Jerome Powell for a second term as chair of the Board of Governors of the Federal Reserve System.

However, the price of the yellow metal – usually in reverse to the US dollar – is now forming a bullish trend as the new Omicron Covid-19 variant comes as a concern to the global economic recovery.

“Omicron has already prompted some countries to close their borders and cast a shadow on the economic recovery,” reported Investing.com.

“The recent rise in Covid-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” the article quoting Powell as saying.

Health officials are racing to determine how transmissible and deadly the new variant is and to what extent current vaccines remain protective.

The US has imposed a travel ban on some nations in southern Africa, where the strain was discovered.

Concern over the recent rise in Covid-19 cases and the emergence of the new Omicron variant “could reduce people’s willingness to work in person, which would slow progress in the labour market and intensify supply-chain disruptions,” Powell told the Senate banking committee, the BBC reported.

Based on such fundamentals, the price of gold could rebound again due to the impact of the Covid-19 variant that could hurt global economic health, particularly that of the US.

Technical analysis suggests the gold price is moving in the range of $1,770 to $1,820 per ounce and creating a box market pattern, meaning that this week investors could wait to buy gold at the key support of $1,780 by setting a stop-loss function at $1,770.

Content image - Phnom Penh Post


  • Second Hungary business forum set for H2

    Cambodia has asked Hungary to provide GSP- (Generalised System of Preferences) Plus facilities for when the Kingdom sheds its least-developed country (LDC) label, as the two countries prepare to hold a second business forum in the second half (H2) of this year to expand trade

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • Nearly 50 states join Kun Khmer Federation, all set for training

    In a little over a week, the Kun Khmer International Federation (KKIF) has accepted membership requests from 20 new nations, in addition to the exiting 29. The sudden influx of international recognition stems from the Kingdom’s successful introduction of Kun Khmer to the 32nd Souheast Asian (

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports

  • CPP sets out five primary strategic goals for 2023-28

    The Cambodian People’s Party (CPP) on January 29 concluded its two-day extraordinary congress, setting the party’s priority goals for 2023-2028. The ruling party’s congress was attended by more than 3,000 members from across the Kingdom, including the members of the permanent and central committees,