Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold remains bearish due US economic recovery moves

Gold remains bearish due US economic recovery moves

Content image - Phnom Penh Post
Golden FX Link Capital business manager Chea Prasith.

Gold remains bearish due US economic recovery moves

Since Monday, the price of gold has started to fall slightly after rising more than one per cent during the opening of the Asian trading market on February 1, hovering around $1,850 to $1,870 per ounce.

This trend is likely to continue in the coming weeks as better US economic conditions make the value of the dollar more desirable, said Golden FX Link Capital business manager Chea Prasith.

According to the Wellxin news portal, 10 Republican senators have urged newly elected President Joe Biden to lower the stimulus budget package for the Covid-19 crisis to $600 billion, around one third of the proposed total budget plan.

This has been touted as a bilateral move to accelerate its approval and help resolve the current crisis and recover the US economy as soon as possible.

The New York Times reported on Monday that under the patronage of Biden’s administration, vaccine production had increased to 1.3 million doses a day in just one week.

With the rollout proving effective there is the high probability of the administration of Biden meeting the new president’s promise of producing 1.5 million doses per day.

Meanwhile, the US Federal Reserve’s economic recovery intervention remains effective, and this is expected to continue until the country’s economic situation improves.

Mary C Daly, the president and CEO of the Federal Reserve Bank of San Francisco, said the Federal Reserve must not prematurely stop or reduce its support for recovering the US economy due to short-term increases in the profits of investors on the stock market.

She added that the provisional success of investors cannot be taken as signs of economic recovery. Therefore, the economic recovery intervention needs to take place.

These positive points during the US economic recovery are good fundamentals for traders to sell gold when the price falls to $1,825, setting the first take-profit function at $1,805 per ounce and the second at $1,790 per ounce and stop-loss function at $1,835 per ounce.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted