Top Stories This Week: Gold's Big Price Drop, Getting Speculative in 2021

TL;DR

Gold prices fluctuated during the first week of the new year due to a rise in US 10-year treasury yields, despite the turmoil surrounding the Capitol Hill events.

Transcript

welcome back to our weekly update i'm charlotte macleod with the investing news network and this is your quick look at the stories we've been covering that you need to hear about we've reached the end of the first full week of the new year and for gold it's been a bumpy ride the yellow metals started the period at about 1910 per ounce then rose to ... Read More

Key Insights

• 😮 Gold prices started the week at $1910 per ounce and rose to $1960 before falling back to $1910.
• 😮 The rise in US 10-year treasury yields, reaching above 1%, impacted gold's appeal as a safe haven asset.
• 🏅 Alternative investments like Bitcoin gained interest, potentially overshadowing gold amidst the turmoil surrounding Capitol Hill events.
• 🖐️ Experts advise leaving room for speculative plays in investment portfolios and emphasizing the importance of chart analysis.

Questions & Answers

Q: Why did gold prices experience volatility during the first week of the year?

Gold prices fluctuated due to the rise in US 10-year treasury yields, which reached above 1% for the first time in months. As gold does not bear interest, higher treasury yields made it less appealing as a safe haven asset.

Q: Why didn't gold rise amidst the turmoil surrounding Capitol Hill events?

Market watchers suggest that gold's lack of response could be attributed to alternative investments like Bitcoin gaining interest. Additionally, some argue that the events on Capitol Hill did not represent enough turmoil to significantly impact gold prices.

Q: What advice do experts give for investors in 2021?

Tom Calandra advises leaving room in portfolios for speculative plays, while Nick Santiago emphasizes the importance of learning how to read charts for informed trading decisions.

Q: What are the outlooks for lithium and cobalt in 2021?

Both the lithium and cobalt markets are expected to experience higher demand and prices in 2021 due to the growing narrative around electric vehicles. The impact of COVID-19 in 2020 is expected to be overcome as the industry looks more promising in the coming year.

Summary & Key Takeaways

• Gold prices started the week at around $1910 per ounce but rose to $1960 before falling back to $1910 by the end of the week.

• The rise in US 10-year treasury yields, reaching above 1% for the first time since last March, impacted gold's appeal as a safe haven asset.

• Speculation on the lack of response from gold amidst Capitol Hill events was attributed to alternative investments like Bitcoin gaining interest.