Jakarta –
The decline in gold prices occurred in a fairly long time span. Even so, this week is believed to be the time for the shiny commodity to reverse course. Is it time to buy gold?
Launching Kitco, Sunday (8/5/2022), the June Comex gold futures price at the close of last Friday was at the level of US$ 1,883. It was down 1.6% on a weekly basis and down 2.19% on a monthly basis.
The decline in world gold prices itself is reflected in the price of Antam’s 24-carat gold output which also continues to decline. In trading positions before the Lebaran holiday or on April 28, 2022, Antam’s gold price fell by IDR 6,000/gram and was at the level of IDR 975,000 per gram.
If you look at the graph, Antam’s gold price has decreased since April 18, 2022, which at that time was at the level of Rp. 1,010,000 per gram. The next day it dropped to a level of Rp. 1.007,000 per gram.
The decline continued to the position of Rp. 995,000 per gram. Then it continued to decline to a level of Rp. 975,000 per gram.
One of the causes of the decline in gold prices is the latest policy change by the US central bank, the Federal Reserve. The Fed had one of the most anticipated announcements throughout the market last week, namely the benchmark interest rate by raising it by half a percentage point on Wednesday (4/5).
There was a massive liquidation of risk assets in trading after the Fed’s announcement. Many investors are turning to cash. It’s important to remember though that gold is holding up pretty well considering how high the US dollar is rising.
“The decline provides room for gold to rebound. Plus, the US dollar index is nearing a peak. That would be good for gold as it forms a favorable macroeconomic environment for the precious metal,” said OANDA Senior Analyst Edward Moya as quoted by Kitco News.
According to Moya, gold is still an investment sack in order to avoid risks in other instruments for some time to come. He believes that until the US dollar index declines, gold still has a chance. Although keep in mind the price will still experience volatility.
“If we continue to see risk aversion across equities and if dollar appreciation is not as strong as we are used to seeing, gold will start to stabilize. There is still a big risk that we could make another big move in bonds. Gold could still be vulnerable to the last big sell-off before it’s all over,” he explained.
Next week’s gold prediction is on the next page
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