Bitcoin May Be the Main Culprit Behind Setbacks of Gold Prices / API Announced that Crude Oil Inventories Increased More than Market Expectations
In a cautious market environment, the price of gold continued to be under pressure below US$1,700. It is currently hovering near US$1,685 and failed to break through 1700 again. As of 08:27 Hong Kong time, the price of gold had fallen by 0.06% to US$1,685. The optimistic data from the United States, the hope of a new stimulus bill and the increase in global vaccination support the dollar’s upward trend and pressure the prospects of gold recovery. In addition, although the geopolitical war between China and the United States has increased risks, gold is no longer a refuge for investors. Instead, investors tend to invest in Bitcoin, which has allowed Bitcoin to continue to gain momentum and create a record-breaking upward trend. So Bitcoin may be the main culprit causing the setback in gold prices. With the obvious downward breakthrough of the 21-day moving average of $1,720, the price of gold is likely to break through the monthly low of $1,676.
API Announced that Crude Oil Inventories Increased More than Market Expectations
The American Petroleum Institute (API) announced that crude oil inventories unexpectedly increased by 3.9 million barrels last week. The market had originally expected an increase of 100,000 barrels. Gasoline inventories have dropped by 6 million barrels, and the market is expected to increase by 700,000 barrels. As for distilled oil inventories, an increase of 2.6 million barrels, the market originally expected an increase of 200,000 barrels. The rise in US crude oil inventories, coupled with the rebound of the new crown epidemic in Europe, has increased the uncertainty in the outlook for crude oil demand, and the market is watching the results of the oil group meeting.
