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On this day — January 12, 2021

Tuesday — a normal trading day. Tuesday is also when the CFTC publishes Commitments of Traders data for the prior week, often producing intraday movement.

Day 12 of 365 · Q1 2021 · 3.3% through the year

January 2021 gold market: Reflation trade pressures gold

Bearish

Recovery optimism and rising yields pressured gold.

Gold eased from around $1,950 toward $1,850 early in 2021 as rising bond yields and optimism about vaccines and stimulus fuelled a 'reflation' rotation into cyclical assets and away from safe havens.

What drove gold in January 2021

  • rising US Treasury yields
  • vaccine-rollout optimism
  • rotation into cyclical assets
  • stronger US dollar
Themes#reflation#rising yields#risk-on rotation

Key events in January 2021

  1. Jan 6Yields jump after Georgia Senate runoffs; gold slips

What happened next

Rising yields kept pressuring gold to a March low near $1,680.

For gold buyers

2021 opened as a mirror image of 2020 — recovery optimism and rising yields did to gold what crisis and falling yields had done for it.