Gold Daily Analysis : 31 May 2021 - Covid-19 and the Rise in Gold Prices

Today's daily analysis of Gold 31 May 2021, it is estimated that it will still try to continue its increase. Gold's movement is increasingly shining due to market participants' concerns about a surge in Covid-19 patients in several countries in the world. The increase in the price of Gold has moved and reached a level above $1900/troy ounce. Apart from the soaring number of Covid-19 patients in several countries in the world, the cause of the increase in gold prices is also supported by the weakening of the US Dollar. The rise in gold prices was also driven by the release of poor US economic data, where the data was about inflation. In addition to the cause of the increase in gold prices as described above, another factor is due to the decline in US government bond yields for long-term or 10-year tenors. As we know, if market conditions are erratic or unstable, safe haven assets will be a shift in investment for market participants. Gold safe haven assets are currently the target of market participants and rule out other safe haven assets. The US dollar is currently in a very worrying condition and is at its lowest level. The weakening of the US Dollar is due to the physical selling of the American currency carried out by market participants. The action of market participants was affected by the release of negative US inflation data, in addition to the end of the month and weekend holidays. The focus of market participants this week is the release of NFP data and unemployment data. On the other hand, one of the Fed officials has said that the current economic growth rate has shown a significant increase. This could stimulate the US Central Bank's decision-making to reduce bond purchases and even evaluate the current interest rate. If this can be realized, it is certain that the value of the US Dollar will strengthen compared to other major currencies.

Gold Analysis Daily Prediction

Today's prediction on the EMAS pair, is expected to continue its increase, and the recommended OP (Open Position) is BUY at the level of 1915.00, with a Target Profit (TP) of 5-10 points and a Stop Loss of 3-5 points. This the daily analysis of Gold on May 31, 2021, where the surge in Covid-19 patients in several countries in the world has soared the price of Gold. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.