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

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • Prime Minister Hun Sen warmly welcomed by president Biden

    Prime Minister Hun Sen, as ASEAN chair, and other ASEAN leaders were warmly welcomed by US president Joe Biden as the ASEAN-US summit May 12-13 kicked off today in Washington. “This evening, I welcomed ASEAN leaders to the White House for the first time in

  • Third Makro outlet planned for capital’s Chroy Changvar

    Makro (Cambodia) Co Ltd is set to invest $12.7 million in its third Cambodian outlet, this time in northeast Phnom Penh’s Chroy Changvar district, an area dotted with high-end residential developments, as shopping behaviours continue to evolve in tandem with economic growth. The Cambodian Investment