Jakarta, CNBC Indonesia – Gold prices began to decline after the flight and touched the level of US$ 2,000 per troy ounce. Gold prices are projected to be slightly volatile this week because the market is waiting for the Federal Open Market Committee (FOMC) meeting.
The price of gold on the spot market in today’s trading, Monday (30/10/2023) at 06:12 WIB is at US$ 2,001.37 per troy ounce. The price weakened 0.22%.
This weakening broke the positive trend of gold which strengthened in the previous four trading days.
Gold prices even flew in the last trade last week, Friday (27/10/2023), closing at US$ 2,005.78 per troy ounce. The price soared 1.05%.
Today’s closing price is the highest since May 15 2023 or the last five months. This is also the first time gold has been able to penetrate the US$ 2,000 level since May 15 2023. This strengthening also extended gold’s rally to three days with a gain of 1.81%.
Not only that, gold’s performance has also been very brilliant in the last week and month. Overall, gold prices have strengthened 1.25% in the last week. This means that gold has strengthened for three consecutive weeks.
Gold prices shrank this morning because market players were projected to vote wait and see before the central bank of the United States (US) The Federal Reserve (The Fed) announces policy.
The Fed will hold a FOMC meeting on Tuesday and Wednesday US time and announce policy on Wednesday or early Thursday Indonesian time.
Market players estimate that the Fed will still hold its benchmark interest rate in the range of 5.25-5.50% this month. The FedWatch Tool shows that 99.9% of market players predict that the Fed will hold its benchmark interest rate.
However, what market players are most waiting for is future policy signals. The Fed at its September meeting indicated that it would still raise interest rates again this year even though policy would be largely determined by economic data.
The latest data shows that the US economy is still accelerating so that inflation is projected to be difficult to slow down.
The US economy is still growing fast at 4.9% (year on year/yoy) in the third quarter of 2023, the highest since the fourth quarter of 2022 or almost two years.
S&P Global Manufacturing PMI Flash data shows US business activity increasing to an expansionary level of 50 in October 2023, from 49.8 in September.
With the economy still strong, the US high interest rate policy could last for a long time. In the midst of still high expectations of high interest rates, gold prices still have a supporter, namely tensions in the Middle East.
“Gold prices could still strengthen as long as the Israel-Hamas conflict has the potential to heat up,” said Kyle Rodda, analyst from Capital.com, quoted fromReuters.
CNBC INDONESIA RESEARCH
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2023-10-29 23:40:00
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