Gold prices dropped on Wednesday as U.S. yields rose and the dollar gained traction. The U.S. treasury yield’s rise came despite a weaker than expected US ADP private payroll report that missed expectations. Additionally, the US ISM services report, which reflects the majority of the U.S.’s economic activity, also came in softer than expected.
In a report recently published by Bloomberg Intelligence, gold has been put in a match against other broad equity market commodities to estimate which one would be more valuable in the long term for investment purposes. What they believe is that even the latest drop in the price of gold is an indicator of this fact.
Commodity markets had a good start in 2021, but as one of the BMO Capital Markets analysts noted, only one asset in the market missed an ascending improvement, which is not considering a bad thing, though. The gold market was stuck in a small trading range during the first month of 2021. It only had an average of around $ 1,800 per ounce support and could not get more than $ 1,866 resistance on its 200-day.
Harmony Gold Mining has recently reported that it is on track to reach annual gold production guideline, which is between 1.26 Moz/y and 1.3 Moz/y. This decision was taken after producing 183kg (745 347oz) of gold in the last six months of the year 2020.