/data/photo/2022/02/13/62089db66cf6b.jpg?fit=%2C&ssl=1 "5 Factors That Cause Gold Prices To Go Up And Down")
JAKARTA, KOMPAS.com – Gold is one of the most popular investment instruments and is suitable for beginners. Apart from the relatively small risk, investment gold also easier to do.
Currently, gold investment can be done anytime and anywhere. Technological developments allow people to invest in gold digitally.
On the other hand, gold is also a liquid investment instrument. So that the disbursement of gold investment funds can be done at any time if investors need cash.
Movement gold price It is also very dynamic and relatively resistant to inflation and crises. In general, gold prices tend to increase from year to year.
Also read: What Affects Online Store Rating Scores on Shopee and Tokopedia?
In 2015, the price gold Antam in Indonesia it ranges from IDR 490,000 to IDR 530,000 per gram. In the last two years, the price of gold has increased significantly compared to previous years.
Gold price Antam today, Sunday (13/2/2022) has reached Rp 953,000 per gram. Meanwhile, Antam’s gold price at PT Pegadaian (Persero) is Rp. 991,000 per gram.
This means that within five years, the price of gold has increased by about 50 percent. At the beginning of the Covid-19 pandemic, when stock instruments fell drastically, the price of gold touched Rp. 1 million per gram.
However, under certain conditions, the price of gold has also decreased, although not significantly. So, what are the factors that cause gold prices to go up and down (fluctuations in gold prices)?
Also read: Stories of Online Store Owners Given 1 Star: Like Dirt, Favorite Products Don’t Sell…
Quoted from the attitude of youruangmu.ojk.go.id page, there are at least five factors that contribute to causes the price of gold to fluctuate. Here’s the explanation:
1. Uncertainty in global conditions
Various situations that occur such as politics, economy, crisis, recession, or war are one of the triggers for the rise and fall of gold prices.
For example, when the economic crisis occurred in 1998, the price of gold could soar dramatically. In times of crisis, gold investment instruments are often seen as a savior.
In addition, geopolitical situations, such as the trade war between the United States and China, also affect the price of gold. At that time, global investors flocked to invest in safe assets, one of which was gold.
Also read: Tanjung Pinggir and Tanjung Priok, Worth Comparing?
So do not be surprised if the price of gold rose. Because there are a lot of gold investment instrument enthusiasts.
However, when the situation calms down, investment instruments safe haven like gold will lack fans. Investors are back hunting for various risky assets, thus making the price of gold fall.
There are three reasons why new gold is chosen when the economy is uncertain or there is geopolitical turmoil. First, the value of gold is maintained despite inflation or deflation. Second, the value of gold is maintained despite the economic crisis or war. Third, the demand for gold does not decrease along with the limited availability of gold.
2. Gold supply and demand
The law of supply and demand also applies to the price of gold. Greater demand for gold than supply will make the price of gold precious metal will rise.
Also read: Here are 2 Ways to Disburse BPJS Employment JHT via Online
On the other hand, the price of gold will go down when the supply is greater than the demand.
Interestingly, the availability of gold in this world is quite limited. Gold production in the world apart from mining results also comes from gold recycling.
There are two versions of the calculation of the total gold in the world. The first version from Thomson Reuters GFMS puts the total figure at 171,300 tonnes. While the second version is from James Turk, founder of Gold Money, which estimates the number to reach 155,244 tons.
3. Monetary policy
The price of gold is also very dependent on the monetary policy taken by the US central bank (The Fed). The monetary policy in question is the policy of raising or lowering interest rates.
If the Fed lowers interest rates, gold prices have the potential to rise. Because the dollar becomes unattractive as an investment option and people tend to put their money in gold investments.
Also read: Seeing the Phenomenon Let the Stars Speak…
Vice versa. When the Fed decides to raise interest rates, the price of gold will fall because investment in deposits is considered more promising.
4. Inflation
Inflation is one of the main factors that make the prices of goods go up, this also has an impact on the price of gold. The higher the inflation rate, the more expensive the gold price will be.
This is because people are reluctant to keep assets in the form of money that easily loses its value. People prefer gold investments whose prices tend to be stable and safer during inflation.
There are several factors that cause the price of gold to go up and down-
5. US dollar exchange rate
Domestic gold price refers to the international gold price which is converted from US dollars into rupiah currency. Therefore, the price of gold is strongly influenced by the movement of the rupiah against the US dollar.
Also read: BI: Economic Recovery Will Continue, but Omicron Needs to be Watched
If the exchange rate of the rupiah against the US dollar weakens, then the local gold price will strengthen or high. Conversely, if the rupiah exchange rate strengthens, then the local gold price tends to fall.
Those are the five causes of gold prices going up and down. For those of you who choose gold as an investment instrument, you should analyze more deeply and know the ins and outs of gold investment before making a decision.
Get updates news of choice and breaking news every day from Kompas.com. Let’s join the Telegram group “Kompas.com News Update”, how to click the link https://t.me/kompascomupdate, then join. You must first install the Telegram application on your cellphone.–
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/elfinanciero/U3CW5ITNGJDHROSVVDUJ3TJXGI.jpg?resize=150%2C150&ssl=1 "‘Stormi’ and other strange names of the children of artists and influencers – El Financiero")
