Jakarta, CNBC Indonesia – The world gold price has been able to stay above US$ 1,800/troy ounce since last Friday, which is good news for gold investors. Because, many analysts consider this level as the key to the movement of gold going forward.
The good news again, the current gold price is called undervalue 12% by Nitesh Shah, research director at WisdomTree. He said looking at the position of the US dollar, interest rates, and inflation, gold should be trading in the range of US$ 2,000/troy ounce.
“Gold is facing a lot of challenges, but the price is far below what it should be, and we will see the price move up,” said Shah, as reported by Kitco, Tuesday (31/8/2021).
He predicts that the gold price will reach US$ 1,970/troy ounce in the fourth quarter of 2021, then back down to US$ 1,860/troy ounce in the second quarter of 2021, which is why the US central bank (The Fed) will tapering at the end of this year. .
Shah added that the gold market will depend a lot on the Fed’s monetary policy meeting in September, because there are expectations that details of the tapering or reduction in the value of the asset purchase program will be announced.quantitative easing/ QE). Selai tapering, outlook The Fed’s inflation will also affect gold projections.
Prior to the announcement of the Fed’s monetary policy on Thursday (23/9/2021) early morning Indonesia time, attention will be paid to the release of US employment data tomorrow Friday. The data is said to be the key when the Fed will do tapering.
Therefore, gold investors should be vigilant before the release of the data.
Reuters survey results show data non-farm payrolls (NFP) or employment outside the agricultural sector, which is estimated at 750,000 people in August. Then the unemployment rate is predicted to fall to 5.2% from the previous 5.4%. In addition there is also an average hourly wage.
The movement of gold in the last two days which only strengthened slightly indicates that the market is waiting for the release of the employment data.
If the data released is better than predicted, speculation that tapering will be carried out faster will certainly strengthen, and hit gold. Conversely, if it is worse than predicted then gold has the potential to skyrocket.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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