The price of gold has been hovering at around $1,850 per ounce, equivalent to $2,220 per tael, but is expected to rise to $2,070 per ounce in February due to the 10 executive orders signed by new US President Joe Biden.
Despite positive prospects for global economic growth following multiple breakthroughs in coronavirus vaccines, Goldman Sachs and Citi analysts predict that gold’s bullish cycle will persist.
After Biden was sworn in as the 46th US president on February 21, he signed 10 executive orders detailed in 23 pages on how to deal with the Covid-19 pandemic.
The outbreak killed an average of 3,054 people a day in the US last week, with an average of 194,252 infections a day, according to a CNBC release on January 21.
Biden has asked Congress to approve an additional $1.9 trillion economic stimulus package to fight the epidemic and help people who have lost their jobs.
The new administration is in the process of implementing policy, so multibillion-dollar economic stimulus package plans are expected to be approved and implemented soon.
Generally, the greater the currency circulation in the market, the higher the currency inflation.
This in turn increases the price of gold because it is a precious metal that every country in the world needs to prevent the risk of instability, especially during economic or political crises, or in the event of armed conflict.
With the price of gold currently standing at $1,850 per ounce and predicted to rise to $2,070 per ounce, Golden FX Link Capital business manager Cheng Daravuth says the price is likely to rise further in early February.
Consequently, traders who want to trade in the long-term price of gold should buy at $1,830 per ounce, setting the take-profit function at $2,000 per ounce and the stop-loss function at $1,750 per ounce.
