Jakarta, CNBC Indonesia – The price of gold is expected to surpass its record high of US$2,000/troy ounce this year. In fact, observers estimate that gold can shoot up to US$ 2,100/troy ounce.
“I see the potential for gold to rise to $2100 or more this year,” said DFCX Futures Analyst Lukman Leong to CNBC Indonesia on Wednesday (18/1/2023).
According to him, the geopolitical uncertainty sentiment caused by the Ukraine war had made the World Central Bank, especially China, divert their foreign exchange reserves to gold.
“The economic slowdown and global recession this year will fuel demand for safe haven gold,” he added.
The People’s Bank of China (PBoC) has reduced its US bond holdings substantially in recent years. According to Julius Baer, a Swiss private bank, his bond holdings were cut to US$ 2 billion from more than US$ 150 billion in 2012.
Lukman Leong added, apart from the sentiment of a global economic slowdown, the price of gold could strengthen with the reopening of the economy in China. This is because the demand for imported gold is expected to increase sharply.
Even so, in today’s trading, Wednesday (18/1/2023) at 06:10 WIB, world gold prices on the spot market also barely moved and fell slightly 0.006% to US$ 1,908.27 per troy ounce.
This morning’s weakness extended the negative trend of gold to weaken over the last three days. During those three days, gold weakened 0.62%.
However, Goldman Sachs said there is hope that the celebration of Chinese New Year or Lunar New Year this weekend can increase gold purchases.
“We estimate that the price of gold can still strengthen to a level of US$ 1,950 in 2023,” said Goldman Sachs, quoted by CNBC International.
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(Mentari Puspadini/ayh)
