Jakarta, CNBC Indonesia – The gold continues to shine brightly. The price remained strong even as the central bank of the United States (USA) The Federal Reserve (The Fed) declared its firm commitment to fight inflation.
Trading Wednesday (11/1/2023) at 06:32 WIB, world gold price market point it was US$1,876.68 per troy ounce. The price strengthened by 0.22%.
Strengthening gold today extended the precious metal’s positive trend. Gold finished up 0.05% at US$1,872.48 per troy ounce in trading on Tuesday (10/01/2023). This price is the highest since May 6, 2022, or the past eight months.
The price of gold strengthened again by 1.2%. point to point in a week. The price of gold also rose by 5.4%, while in one year it rose by 3%.
IG Market analyst Yeap Jun Rong said gold rallied after Fed Chairman Jerome Powell reaffirmed his commitment to curb inflation.
“Declaration falcon can trigger profit taking short-term gold,” Rong said quoted from Reuters.
However, RJO Futures analyst Bob Haberkorn explained that market participants had already valued the statement falcon The Fed so that the price of gold continues to accelerate.
“Interest rates will continue to rise but there will also be a limit. Gold market players have already done that priced against this increase. Technically, gold still has room to continue to rally,” said Haberkorn.
As is known, Powell said in his speech at the Riskbank Conference on Tuesday (10/1) that the US central bank is firmly committed to reducing inflation, even if it has the potential to cut economic growth and trigger pressure from politicians .
“Price stability is an important cushion for a healthy economy and allows society to reap myriad benefits over time,” Powell said, quoted by CNBC.
Powell added that the Fed’s efforts to fight inflation could have a negative impact on US economic growth.
“Restoring price stability when inflation is high requires efforts that may become unpopular in the near future because they could slow down the economy,” he added.
The Fed’s tough statement indicates that they will continue to raise interest rates going forward. A rise in interest rates will cause the US dollar to rebound. This condition has a negative impact on gold because it makes gold more expensive, making it less desirable.
CNBC INDONESIA RESEARCH TEAM
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