Gold Price Trend Continues, Why? Page all

JAKARTA, KOMPAS.com – Price trends gold down in the last two days, both globally and domestically.

On Thursday trading (27/1/2022) gold price futures fell 36.6 dollars, or 2.0 percent, to 1,793.10 a troy ounce.

However, in today’s trading, Friday (1/28/2022) gold prices at the global level began to improve with a slight gain of 0.06 percent or 1.1 points to the level of 1,796.1 per troy ounce.

Also read: Ahead of the weekend, Antam’s gold price plummets again to Rp 8,000 per gram

Meanwhile, in the domestic market, Antam’s gold price was observed to have fallen by Rp. 10,000 per gram on Thursday and continued to fall by Rp. 8,000 to Rp. 930,000 per gram on Friday.

So what caused the gold price to drop?

Director of PT TRFX Garuda Berjangka Ibrahim Ascustombi said the drop in gold prices on Thursday was due to the decision of the United States Central Bank or the Federal Reserve (The Fed) which indicated it would raise its benchmark interest rate in March 2022.

“This is what makes speculators immediately switch from gold to the dollar index,” he told Kompas.com, Friday (28/1/2022).

According to him, this decline will continue at least until trading on Monday (31/1/2022). However, he believes the decline will only be temporary, because there are geopolitical conditions in the global that could trigger an increase in gold prices.

Also read: Want to Participate in the Pawnshop Gold Bazaar Auction every Friday? Here’s the schedule and conditions

Ibrahim explained that if the conflict between Russia and Ukraine escalates and triggers a war in February or March, it is likely that the Fed will not raise its benchmark interest rate.

Market participants will respond to this by switching to gold, so that the price will increase again. He estimates that in the future the price of gold will return to the level of 1,800 US dollars per troy ounce. .

“This will actually lift positive sentiment towards precious metals or world gold. If this geopolitics happens, it is likely that gold prices will soar again, the dollar will weaken again,” he said.

Furthermore, Ibrahim estimates that if the price of gold can rise to touch the level of 1,854 US dollars per troy ounce, then there is the potential to continue increasing to the level of 1,923 US dollars per troy ounce, even touching the level of 2,000 US dollars per troy ounce.

“Well, at 2,000 if the geopolitical situation continues to heat up, it will slide to 2,150, which may be the last highest level in 2022,” he explained.

Seeing the movement of gold prices, Ibrahim also suggested that people who have sufficient funds can invest in gold when the price is low. However, the thing to note is that gold is a type of long-term investment if you want to gain maximum profit.

“So it’s better to buy, if you have money just buy gold,” concluded Ibrahim.

Also read: Tips for Starting Gold Investment for Beginners at the Beginning of the Year

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