Jakarta, CNBC Indonesia – World gold prices bounced back in trading Friday (7/31/2020) morning, after yesterday weakening as well as ending a nine-day rally. Before weakening yesterday, gold scored a record high twice of all time this week.
Launching Refinitiv data, world gold prices traded in the range of US $ 1,969.78 / troy ounce at 9:55 WIB, up 0.53% on the spot market. Yesterday this precious metal weakened 0.55%, meaning that almost all of the weakening was reversed, it did not even close the possibility that it would continue racing up given the long trading time.
The effect of recession on three new continents was felt for gold today. Yesterday the profit taking made gold weaken, just be advised during July to Wednesday (07/29/2020) gold has shot more than 10%, while since the beginning of the year almost 30% so it’s reasonable for investors to be tempted to withdraw how.
This is action profit taking it seems to have subsided, and market participants are again seeing recession that is happening everywhere.
In Asia, Hong Kong reported economic growth in the second quarter of 2020 which contracted (grew minus) 9% year-on-year (YoY), while in the previous quarter -9.1% YoY. Before Hong Kong, Japan, Singapore and South Korea had already entered the recession.
From Asia turning to Europe, Germany also suffered the same fate. Gross domestic product (GDP) in the second quarter of 2020 was reported -11.7% YoY, while in the previous quarter -2.3 YoY. The driving force of this European economy was legally experiencing a recession.
On a quarterly basis, GDP contracted 10.1% from the first quarter of 2020. The decline has been the deepest since 1970.
Turning to the American continent, the Superpower, United States, finally officially experienced a recession.
Gross domestic product (GDP) in the second quarter of 2020 was reported to have contracted 32.9%. These contractions are the most severe in US history.
In the first quarter of 2020, the economy experienced a contraction of 5%, so that it is legally experiencing a recession.
Not only this time the US experienced a recession, launching Investopedia, the US has experienced 33 recessions since 1854. Meanwhile, when viewed since 1980, the State of Uncle Sam suffered four recessions, including those that occurred during the 2008 global financial crisis.
That is, the recession this time will be the 34th for the US.
The US has experienced even worse than the recession, the Great Depression or a recession that lasted for a decade, in the 1930s. But the economic contraction was not as deep as in the second quarter-2020.
The recession issue is one of the “gasoline” for gold to set the highest record of all time.
The highest record of the previous world gold price of US $ 1,920.3 / troy ounce was reached on September 6, 2011, which was finally broken earlier this week, for almost a decade. On Monday (7/27/2020) World gold prices shot up to touch US $ 1,945.16 / troy ounce, a new record high at the time, but its age is less than 24 hours.
Tuesday (28/7/2020) morning the world gold price flew high touching US $ 1,980.56 / troy ounce which is now the highest record of all time.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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